Larry holds a monopoly in the market for pies, with no fixed costs and a constant marginal cost of c = 24. Moe, Curly, and Shemp are the three consumers who have the individual demand curves q1(p) = 30 - p/ 2, q2(p) = 20 - p/ 3, q3(p) = 10 - p/ 6 a) Find the surplus to consumers CSm and producers PSm in the monopoly equilibrium, as well as the deadweight loss DWLm. How much surplus CSmi goes to each consumer? b) Suppose that Larry is a first-degree price discriminator, who charges a different price for each pie consumed. Find the quantity qI as well as the surplus to consumers CSI and producers PSI. How much qIi does each consumer buy and what surplus CSIi does each receive?
Larry holds a
Moe, Curly, and Shemp are the three consumers who have the individual demand curves
q1(p) = 30 - p/ 2, q2(p) = 20 - p/ 3, q3(p) = 10 - p/ 6
a) Find the surplus to consumers CSm and producers PSm in the monopoly equilibrium, as well as the
b) Suppose that Larry is a first-degree
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