ose that under perfect price-discrimination, the firm produces 20.98 units, and its total surplus is $1,233.44. Identify mer surplus, producer surplus, and the deadweight loss in this market scenario. Give your answers to two decimal places imer surplus: $ acer surplus: $

ose that under perfect price-discrimination, the firm produces 20.98 units, and its total surplus is $1,233.44. Identify mer surplus, producer surplus, and the deadweight loss in this market scenario. Give your answers to two decimal places imer surplus: $ acer surplus: $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that a firm with market power can perfectly price-discriminate and faces the demand function q = 400 – 4P. The firm's
total production costs are given by MC(q) = 2q + 0.12q.
Suppose that under perfect price-discrimination, the firm produces 20.98 units, and its total surplus is $1,233.44. Identify
consumer surplus, producer surplus, and the deadweight loss in this market scenario. Give your answers to two decimal places.
consumer surplus: $
producer surplus: $
deadweight loss: $

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