Alpha 42 Beta -4 The representative consumer of designer shirts that you produce has a demand Q MR MC=AC function of P=42 - 4 Q. MC=AC = $10. 42 10 38 34 10 Representative Consumer Demand 34 26 10 30 18 10 45 26 10 10 40 10 ON 18 10 30 14 14 10 25 10 22 10 30 10 NO 38 10 10 - 2 -46 10 - 6 54 10 o 10 0 1 3 6 8 9 10 11 12 13 14 15 16 -10 -14 70 10 -MR -MC=AC 15 18 78 10 What is the average revenue, costs and profit per customer under the following conditions? You charge the same unit price to all customers. 26 1 18) Average Revenue 104 1 19) Total Revenue 40 20) Total Cost 64 1 21) Profit You engage in first-degree price discrimination capturing all consumer surplus at four units. {Think "integration" of the demand curve.} 26 1 22) Average Revenue 104 1 23) Total Revenue 40 1 24) Total Cost 64 1 25) Profit You engage in two-part pricing. {Think "fixed fee" generating profit that captures all consumer surplus.} 26 1 26) Average Revenue 104 1 27) Total Revenue 40 28) Total Cost 54 1 29) Profit