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 600 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 $ 200 (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 $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect" price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price (dalars per round of ga 4 500- 450- 400- 350- 300 250- 200- 150- 100 50- MC ATC D MR 6100 200 300 400 500 600 700 800 900 1000 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 600 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 $ 200 (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 $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect" price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price (dalars per round of ga 4 500- 450- 400- 350- 300 250- 200- 150- 100 50- MC ATC D MR 6100 200 300 400 500 600 700 800 900 1000 Quantity rounds of golf per week)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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