Suppose that a price - discriminating monopolist faces a downward - loping demand curve with a vertical intercept of $8. Given the firm's cost conditions, a monopolist would choose a price of $4 and sell 4 units of output to maximize profit. How much consumer surplus would be lost if the irm practiced second-degree price discrimination, selling 2 units at $6

Suppose that a price - discriminating monopolist faces a downward - loping demand curve with a vertical intercept of $8. Given the firm's cost conditions, a monopolist would choose a price of $4 and sell 4 units of output to maximize profit. How much consumer surplus would be lost if the irm practiced second-degree price discrimination, selling 2 units at $6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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