c. Suppose MC2 , p , MC1 . For p in that range, what is the largest
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c. Suppose MC2 , p , MC1
. For p in that range, what is the largest possible F 1
that the monopolist can charge to type 1 consumers if she sets p 1 5 MC1 5 8? (Hint: Draw the graph with the two demand curves and then ask how much consumer surplus type 1 consumers could get by simply pretending to be type 2 consumers and accepting the package designed for type 2 consumers.)
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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