Consider the case where there is a consumer in the market with a demand of P = 60 - 2q. A monopolist has variable costs of VC-2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF 200, p 20 m OF=150, p = 20 OF=100, p = 40 OF=400, p = 40

Consider the case where there is a consumer in the market with a demand of P = 60 - 2q. A monopolist has variable costs of VC-2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF 200, p 20 m OF=150, p = 20 OF=100, p = 40 OF=400, p = 40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Monopoly has a fixed cost FC=10 and her MC=4. The first group of customers has demand Q=20-0.5P, the second group has demand Q=30-P. Monopolist charges a unique price (does not price discriminate). Find the profi of the monopolist. Calculate the profit of a monopolist if he engages in third-degree price discrimination
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