Suppose that a monopolist charges each buyer a price equal to her maximum willingness to pay. In this case of total consumer surplus is equal to inelastic price discrimination; zero perfect price discrimination; monopoly profits bulk pricing; zero perfect price discrimination; zero efficiency pricing; monopoly profits

Suppose that a monopolist charges each buyer a price equal to her maximum willingness to pay. In this case of total consumer surplus is equal to inelastic price discrimination; zero perfect price discrimination; monopoly profits bulk pricing; zero perfect price discrimination; zero efficiency pricing; monopoly profits

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 14E

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O OO The above graph shows the market demand function for a product. Assume that the market is served by a perfectly-price-discriminating monopolist with a constant marginal cost of production equal to $4 (MC = $4) and no fixed cost (FC = 0). The deadweight loss equals: DWL - $72 DWL - $0 DWL- -$48 DWL - $84 DWL-$36 $30 $28 $26 $24 $22 $20 Question 23 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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If a monopolist faces an inverse demand curve, p(y) = 100 − 2y and has constant marginal costs of $4 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, -What is the monopolist's profit? -What is the current size of the consumer surplus and the deadweight loss due to monopoly? Type out the correct answers ASAP with proper explanation
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02
. Let the demand curve for a monopolist’s product be P = 100 – 2Qd and the marginal cost of production be constant at MC = 10. Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of P1 = $70 and the second block provides an additional 15 units at a price of P2 = $40. How much does the monopolist’s profit rise with this scheme?
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