The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly. a. Place point P, at the profit maximizing price and quantity assuming that the monopolist can only charge a single price. b. What are the profits of the firm if it charges a single price? $ 1225 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $75 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? s Price and Costs(5) 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 MC 5 MR D 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A6.

 

The accompanying graph depicts the marginal revenue (MR),
demand (D), and marginal cost (MC) curves for a monopoly.
a. Place point P, at the profit maximizing price and quantity
assuming that the monopolist can only charge a single price.
b. What are the profits of the firm if it charges a single price?
$
1225
Suppose the monopolist able to successfully price
discriminate between two groups by charging one group $75
and charging $35 to the other group.
c. What are the firm's profits if it charges the two prices as
mentioned above?
$
Price and Costs(5)
100
95
888222238889981
90
85
75
70
65
60
55
50
45
40
35
30
25
20
15
10
MC
5
MR
D
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100
Quantity
Transcribed Image Text:The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly. a. Place point P, at the profit maximizing price and quantity assuming that the monopolist can only charge a single price. b. What are the profits of the firm if it charges a single price? $ 1225 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $75 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? $ Price and Costs(5) 100 95 888222238889981 90 85 75 70 65 60 55 50 45 40 35 30 25 20 15 10 MC 5 MR D 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
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