Rich Uncle Pennybags is the only seller of board games in Atlantic City, New Jersey. The inverse demand curve for board games is given by: P= 40–0.5q where q is in hundreds of games per month. Rich Uncle Pennybags' marginal cost of producing board games is: MC =7+0.1q . Suppose Uncle Pennybags is a magnificent salesman, able to discern perfectly his customers' willingness to pay. If he leverages this information to begin perfectly price discriminating, how many board games will he sell?
Rich Uncle Pennybags is the only seller of board games in Atlantic City, New Jersey. The inverse demand curve for board games is given by: P= 40–0.5q where q is in hundreds of games per month. Rich Uncle Pennybags' marginal cost of producing board games is: MC =7+0.1q . Suppose Uncle Pennybags is a magnificent salesman, able to discern perfectly his customers' willingness to pay. If he leverages this information to begin perfectly price discriminating, how many board games will he sell?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...
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![Rich Uncle Pennybags is the only seller of board games in Atlantic City, New
Jersey. The inverse demand curve for board games is given by: P= 40– 0.5q
where q is in hundreds of games per month. Rich Uncle Pennybags' marginal
cost of producing board games is: MC = 7+0.1q .
Suppose Uncle Pennybags is a magnificent salesman, able to discern perfectly
his customers' willingness to pay. If he leverages this information to begin
perfectly price discriminating, how many board games will he sell?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3423593-3c96-4624-9341-ac9734a48b6a%2Fc2470045-d4fe-40ea-9b05-c6e727ba8a8e%2Fmae2rf7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rich Uncle Pennybags is the only seller of board games in Atlantic City, New
Jersey. The inverse demand curve for board games is given by: P= 40– 0.5q
where q is in hundreds of games per month. Rich Uncle Pennybags' marginal
cost of producing board games is: MC = 7+0.1q .
Suppose Uncle Pennybags is a magnificent salesman, able to discern perfectly
his customers' willingness to pay. If he leverages this information to begin
perfectly price discriminating, how many board games will he sell?
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