Alpha 42 Beta The representative consumer of designer shirts that you produce has a demand function of P=42 - 4 Q. MC=AC = $10. MR MC=AC 10 Representative Consumer Demand -14 22 -30 -38 -46 54 0 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 62 - MR -MC=AC .70 - 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 54 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 23) Total Revenue 40 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 64 1 29) Profit You engage in a "special deal" block-pricing, packaging eight shirts together. 10 1 30) Average Revenue 80 1 31) Total Revenue 80 32) Total Cost 0 33) Profit 64 1 34) Consumer surplus for representative customer. 64 1 35) Producer Surplus 36) T/F Dead Weight Loss is zero because P=MC at eight-shirt block-pricing