Use the following to answer questions (19) - (21): Suppose a monopolist faces the following market demand equation: Q = 200 - 2P, where Q is the quantity demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following total cost (TC): TC = 50Q. [19] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the cumulative amount the firm should sell equals: А. 20 В. С. 40 80 D. 100 [20] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then consumer surplus equals: А. В. $1200 $625 $400 None of the above С. D. [21] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the firm's profit will exceed $2000. А. True B. False

Use the following to answer questions (19) - (21): Suppose a monopolist faces the following market demand equation: Q = 200 - 2P, where Q is the quantity demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following total cost (TC): TC = 50Q. [19] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the cumulative amount the firm should sell equals: А. 20 В. С. 40 80 D. 100 [20] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then consumer surplus equals: А. В. $1200 $625 $400 None of the above С. D. [21] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the firm's profit will exceed $2000. А. True B. False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I am a little confused on the explnation for Part B. I would say no they should shut down their operation.
I need the answer as soon as possible
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