The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![The accompanying graph depicts the marginal revenue
(MR), demand (D), and marginal cost (MC) curves for a
monopoly
a. Place point Pi at the profit maximizing price and quantitvy
assuming that the monopolist can only charge a single price.
100
95
90
85
80
75
70
65
2 60
b. What are the profits of the firm if it charges a single price?
50
45
Suppose the monopolist able to successfully price
discriminate between two groups by charging one group $60
and charging $35 to the other group.
c. What are the firm's profits if it charges the two prices as
mentioned above?
35
30
25
20
15
10
MR
0
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100
Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a57b43a-8622-4253-b36f-09f28818a68a%2F9b80dccc-8335-4f2d-9a31-198eafeac1d6%2Flqdgejr.png&w=3840&q=75)
Transcribed Image Text:The accompanying graph depicts the marginal revenue
(MR), demand (D), and marginal cost (MC) curves for a
monopoly
a. Place point Pi at the profit maximizing price and quantitvy
assuming that the monopolist can only charge a single price.
100
95
90
85
80
75
70
65
2 60
b. What are the profits of the firm if it charges a single price?
50
45
Suppose the monopolist able to successfully price
discriminate between two groups by charging one group $60
and charging $35 to the other group.
c. What are the firm's profits if it charges the two prices as
mentioned above?
35
30
25
20
15
10
MR
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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