Question
A monopolist faces an inverse demand curve, p(y) = 120- 2y and has constant marginal costs of $20 and 0 fixed costs. a. Assume the
A monopolist faces an inverse demand curve, p(y) = 120- 2y and has constant marginal costs of $20 and 0 fixed costs.
a. Assume the monopolist is able ot practice perfect price discrimination. How many units will it sell? what are its total profits?
b. If the monopolist needs to price uniformly, how many units will it sell and at what price? What are its total profits?
c. What is the deadweight loss in this market if the monopolist prices uniformly? What is the deadweight loss if it can practice perfect price discrimination?
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Agricultural Economics
Authors: Evan Drummond, John Goodwin
3rd edition
136071929, 978-0136071921
