Question
A monopolist has two sets of customers. The inverse demand for Group 1 is described by P=200-X. For Group 2, the inverse demand is P=100-X.
A monopolist has two sets of customers. The inverse demand for Group 1 is described by P=200-X. For Group 2, the inverse demand is P=100-X. The monopolist faces constant marginal cost of 20 and fixed costs are zero.
What is the consumer surplus if the firm CAN price discriminate?
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
