2. Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm’s optimal price, output, and the resulting profits for each of the following scenarios:

a. You charge the same unit price to all consumers.

b. You engage in first-degree price discrimination.

c. You engage in two-part pricing.

d. You engage in block pricing.

Transcribed Image Text:

Price 110 100 90 80 70 60 50 40 30 20 10- 0 MR MC = AC D 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity