Question
A monopolist produces output with constant marginal cost equal to 1. There are two of consumers that are potentially in the market for the good.
A monopolist produces output with constant marginal cost equal to 1. There are two of consumers that are potentially in the market for the good. Consumer A has inverse demand function pA(x)=7x; and consumer B has inverse demand function pB(x)=5x
-What are the Pareto efficient levels of consumption of the good by consumers A and B? Call these xA and xB respectively.
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
