Question
(3 marks) Given: P = 500 - 10 Q MR = 500 - 20 Q and the monopolist's costs: TC = 2,000 + 100 Q
(3 marks) Given: P = 500 - 10 Q MR = 500 - 20 Q and the monopolist's costs: TC = 2,000 + 100 Q MC = 100 a) (1 mark) Find the single-price monopoly profit.
b) (2 marks) Assume a 3-block pricing model can be used. Use the profit maximizing rule to find the optimal block quantity. Find the resulting revenue and profit.
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Mathematical Economics
Authors: Wade Hands, D Wade Hands
2nd Edition
0195133781, 9780195133783
