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A rm is originally operating as a singleprice monopolist that faces a market demand curve P (Q) = 29'? Tall? and total cost curve equal
A rm is originally operating as a singleprice monopolist that faces a market demand curve P (Q) = 29'? Tall? and total cost curve equal to TC[Q} = 88, 000 + 22:12, with constant MC equal to MC(Q) = 22 for all units produced. Part {a}: How much output does the rm produce and at what price is each unit sold for? Part {b}: Calculate the nn's prot. The rm now realizes there are actually two distinct groups of consumers that purchase their product, with the following demand functions: 1 P (a) = 321 go 1 P [a] = 235 1:}: Their total and marginal cost curyes have not changed. If the rm wanted to successfully practice thirddegree price discrimination: Fart {c}: How many units of output would they sell to group 1 and how much will each consumer in group 1 pay'?I Part {d}: How many units of output would they sell to group 2 and how much will each consumer in group 2 pay'? Part {e}: How much prot is earned by the rm when they practice thirddegree price discn'mination? Part If): How much did prots rise by when the rm switched to using price discn'mination
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