I need the answer as soon as possible Suppose a monopolist faces consumer demand given byP= 600 - 1Qwith a constant marginal cost of $60 per unit (where marginal cost equals average total cost assume the firm has no fixed costs).If the monopoly can only charge a single price, then it will earn profits of S (Enter your response rounded as a whole number)Correspondingly, consumer surplus is SHowever, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant at 270, the monopoly would have profits of S

Here we can find the monopoly single price, profit and consumer surplus as follow

Answered: Suppose a monopolist faces consumer…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.6P

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