### Understanding Monopoly and Price Discrimination**Scenario:**A monopoly faces an inverse demand curve of:\[ p = 330 - Q \]The firm has a constant marginal and average cost of $90 and can perfectly price discriminate. **Questions:**1. What is its profit?2. What are the consumer surplus, welfare, and deadweight loss?3. How would these results change if the firm were a single-price monopoly?**Calculations:**- **Profit from perfect price discrimination ($ \pi $):** $28,800 (Enter your response as a whole number.) - **Corresponding Consumer Surplus (CS):** $ CS = \$ \_\_\_ $ (Enter your response as whole numbers)- **Welfare (W):** $ W = \$ \_\_\_ $- **Deadweight Loss (DWL):** $ DWL = \$ \_\_\_ $ **Note:** Please fill in the blanks with the appropriate numerical answers based on further calculations or insights.

We are given the inverse demand function of the monopolist: P = 330 - Q Given the cost: MC…

If a monopoly faces an inverse demand curve of p=330 - Q. has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 28800 (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$ w=$. DWL = $

If a monopoly faces an inverse demand curve of p=330 - Q. has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 28800 (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$ w=$. DWL = $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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