Economics Suppose that a monopolist supplies a product in two distinct markets, LA and NYC. The demand functions for the two markets are PLA = 27 – 3QLA and PNYC = 42 - 6QNYC. The monopolist has a fixed cost of $12 and a constant marginal cost of $5 per unit. a. If segmenting is feasible, what are the profit- maximizing prices, quantities, and maximized profit? b. If segmenting is NOT feasible, what is the profit- maximizing price, quantity, and maximized profit? c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?

Economics Suppose that a monopolist supplies a product in two distinct markets, LA and NYC. The demand functions for the two markets are PLA = 27 – 3QLA and PNYC = 42 - 6QNYC. The monopolist has a fixed cost of $12 and a constant marginal cost of $5 per unit. a. If segmenting is feasible, what are the profit- maximizing prices, quantities, and maximized profit? b. If segmenting is NOT feasible, what is the profit- maximizing price, quantity, and maximized profit? c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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only question #4 please
Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost. If profit is less than zero that indicates a loss. What is the maximum profit you found in this table? At what quantity and price combination is profit maximized for this monopolist? Next, verify this result by using Marginal Analysis to find the profit maximizing price and quantity combination. For each quantity, ask yourself if Marginal Revenue exceeds Marginal Cost. If it does, then profits would be increased by producing that quantity. As you go down the table to higher quantities, stop…
Suppose that a monopolist supplies a product in two distinct markets, LA and SF. The demand functions for thetwo markets are PLA = 52 – 4QLA and PSF = 70 – 7QSF. The monopolist has a fixed cost of $20 and a constantmarginal cost of $10 per unit.a. If segmenting is feasible, what are the profit-maximizing prices, quantities, and maximized profit?b. If segmenting is NOT feasible, what is the profit-maximizing price, quantity, and maximized profit?c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?
Please describe each step to solve the problem presented below:
Question is in attached image. Thank you! Only answer D,E,F
Answer it correctly please...
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