The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? The total number of rounds sold per week is 120 rounds. (Round your response to the nearest whole number.) What would be the price on the last round sold? The price on the last round sold is $ 80. (Round your response to the nearest dollar.) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $(Round your response to the nearest dollar.) Price (dollars per round of golf) 200- 180- 160- MC 140- 100- 80- 60- 40 20- 0- 20 40 ATC MR 80 100 120 140 160 180 200 Quantity (rounds of golf per week)

The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? The total number of rounds sold per week is 120 rounds. (Round your response to the nearest whole number.) What would be the price on the last round sold? The price on the last round sold is $ 80. (Round your response to the nearest dollar.) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $(Round your response to the nearest dollar.) Price (dollars per round of golf) 200- 180- 160- MC 140- 100- 80- 60- 40 20- 0- 20 40 ATC MR 80 100 120 140 160 180 200 Quantity (rounds of golf per week)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 12PA

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