Question
A firm selling NFL jerseys has market power and faces an inverse demand curve P = 90 - 1.5Q, a marginal revenue curve MR =
A firm selling NFL jerseys has market power and faces an inverse demand curve P = 90 - 1.5Q, a marginal revenue curve MR = 90 - 3Q, and marginal cost curve MC = 10 + Q. a. If the firm uses a single-price pricing strategy, what is the profit maximizing output? ____________. b. If the firm uses a single-price pricing strategy, what is the profit maximizing price? $____________. c. If the firm sells using a single-price pricing strategy, what is the producer surplus? $____________. d. If the firm sells using a single-price pricing strategy, what is the consumer surplus? $____________. e. If the firm successfully practices perfect price discrimination, its output will be: ______________. f. If the firm successfully practices perfect price discrimination, what is the producer surplus?
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