Market demand for the nuclear substance pluranium is given below, along with the TR for the given demand schedule. Pluranium is supplied to the world market by a monopolist. Suppose that the marginal cost of supplying an extra megatonne of pluranium is $20 and the business has FC=$60. Suppose that the monopolist can 3rd degree price discriminate and segregate market demand into two global regions – North world and South world - as follows: North world Price ($ per megaton) 80 70 60 50 40 30 20 10 0 Quantity (megatons) quantity would be 0 1 2 3 3 3 3 3 3 South world Price ($ per megaton) 80 70 60 50 40 30 20 10 0 If they were only to service South World, then the price would be Quantity (megatons) 0 0 0 0 1 2 3 45 and the

Market demand for the nuclear substance pluranium is given below, along with the TR for the given demand schedule. Pluranium is supplied to the world market by a monopolist. Suppose that the marginal cost of supplying an extra megatonne of pluranium is $20 and the business has FC=$60. Suppose that the monopolist can 3rd degree price discriminate and segregate market demand into two global regions – North world and South world - as follows: North world Price ($ per megaton) 80 70 60 50 40 30 20 10 0 Quantity (megatons) quantity would be 0 1 2 3 3 3 3 3 3 South world Price ($ per megaton) 80 70 60 50 40 30 20 10 0 If they were only to service South World, then the price would be Quantity (megatons) 0 0 0 0 1 2 3 45 and the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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