Suppose a single-price monopolist decides to switch to second degree price discrimination. It sells the first block of 20 units at a price of $80 per unit. It sells the next block of 10 units at a price of $70 per unit. 100 90 80 MC 70 60 50 40 30 20 10 20 30 50 100 MR Consumer surplus under a single-price monopolist is equal to $ a shift to second degree price discrimination is equal to $ and consumer surplus under P.

Suppose a single-price monopolist decides to switch to second degree price discrimination. It sells the first block of 20 units at a price of $80 per unit. It sells the next block of 10 units at a price of $70 per unit. 100 90 80 MC 70 60 50 40 30 20 10 20 30 50 100 MR Consumer surplus under a single-price monopolist is equal to $ a shift to second degree price discrimination is equal to $ and consumer surplus under P.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost. If profit is less than zero that indicates a loss. What is the maximum profit you found in this table? At what quantity and price combination is profit maximized for this monopolist? Next, verify this result by using Marginal Analysis to find the profit maximizing price and quantity combination. For each quantity, ask yourself if Marginal Revenue exceeds Marginal Cost. If it does, then profits would be increased by producing that quantity. As you go down the table to higher quantities, stop…
Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cost function isC(Q)=10+2Q. What is the firm's profit-maximizing maximum profits?A. $1,115B. $1,109C. $1,190.5D. $2,100.5
True/ False There is a price discrimination in the monopoly market.
Answer it correctly please...
A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs 1 3. 4. 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist's fixed costs be such that he still wants to start producing at 1. D Focus 9°C Sun
Item 7 Suppose a monopolist’s profit-maximizing output is 400 units per week and that the firm sells its output at a price of $40 per unit. The firm has total costs of $8,000 per week. Assume the monopolist is maximizing its profit and earns $20 per unit from the sale of the last unit produced each week.
Would producer surplus with second-degree price discrimination not below a single price.
The demand for a monopolist’s output is 5,000/(p + 3)2, where p is the price it charges. At a price of $5, the elasticity of demand for the monopolist’s output is (Hint: is it positive or negative?) Please round your answer to two decimal places, if necessary.
Subpart 7
Exhibit 9-7 Monopolist (dollars) 10 8 6 0 Quantity earn an hourly profit of $240. MR As shown in Exhibit 9-7, in the short run, the monopoly will: earn an hourly profit of $80. MC break even (i.e., earn zero economic profit). suffer an hourly loss of $160.
Question 33 Suppose a monopolist faces the demand curve P = 200 – 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 33 units at a profit of 3300. The monopolist sells 33 units at a profit of 1650. The monopolist sells 50 units at a profit of 5000. The monopolist sells 50 units at a profit of 2500.
Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cast function isC(Q)=10+2Q. What is the profit-maximizing price of the firm?A. $15 B. $51 C. $41 D. $32 And what is the profit-maximizing quantity of the firm?A. 24.5B. 18C. 20.5D. 16