Pearson eText Microeconomics -- Instant Access (Pearson+)
Pearson eText Microeconomics -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879572
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON+
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Chapter 10, Problem 11E

(a)

To determine

AR, MR, AC, and MC curves and the profit-maximizing price and quantity of the firm and the profit made.

(b)

To determine

Changes in profit when the government fixes the price.

(c)

To determine

The price ceiling that yields the maximum level of output from the monopolist.

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You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group s elasticity of demand is while group s is Your marginal cost of producing the product is $ a Determine your optimal markups and prices under thirddegree price discrimination. b Identify the conditions under which thirddegree price discrimination enhances profits.
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Demand and supply function
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