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1. (100) Larry holds a monopoly in the market for pics, with no xed costs and a constant. marginal cost of c = 12. Moe,

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1. (100) Larry holds a monopoly in the market for pics, with no xed costs and a constant. marginal cost of c = 12. Moe, Curly, and Shemp are the three consumers who have the individual demand curves as) = 20 9. (12(10): 16 g, qgrp) : 12 g. 3 (a) (10) Find the competitive equilibrium price p\" and quantity q\". How many pics of does each consumer buy? (b) (10) Find the surplus to consumers CSC and producers PS\" in the competitive equilib- rium. How much surplus 08,-C goes to each consumer? (c) (10) Suppose that Larry must charge a single price for all pies. Find his monopoly price pm and quantity q'\". How many pies q?\" does each consumer buy? (d) (10) Find the surplus to consumers CS'\" and producers P5\" in the monopoly equi- librium, as well as the deadweight loss DWL'". How much surplus 05;" goes to each consumer? (e) (10) Suppose that Larry is a rstdegree price discriminator, who charges a di'erent price for each pie consumed. Find the quantity q'Ir as well as the surplus to consumers CSJr and producers PSI . How much q: does each consumer bu}r and what surplus CS;I does each receive? (f) (10) Now suppose that Larry is a seconddegree price discriminator who charges different prices depending on the quantity sold, by implementing a two-part tariff T(q) : a + pq. Calculate the parameters of the prot maximizing tariff a\" and p\

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