12.4. A firm serving a market operates with total variable cost TVC ! Q2 . The corresponding...

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12.4. A firm serving a market operates with total variable cost TVC ! Q2

. The corresponding marginal cost is MC ! 2Q. The firm faces a market demand represented by P ! 40 " 3Q.

a) Suppose the firm sets the uniform price that maximizes profit. What would that price be?

b) Suppose the firm were able to act as a perfect firstdegree price-discriminating monopolist. How much would the firm’s profit increase compared with the uniform profit-maximizing price you found in (a)?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 15, 2024 05:03 AM

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12.4. A firm serving a market operates with total variable cost TVC ! Q2 . The corresponding...

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Microeconomics

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