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Ann is originally operating as a singleprice monopolist that faces a market demand curve P (Q) = 190 % and total cost curve equal to
Ann is originally operating as a singleprice monopolist that faces a market demand curve P (Q) = 190 % and total cost curve equal to TC{Q] = 3t}, 50!] + 4%}, with constant MC equal to MC[Q} = 42 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 rm's prot. The rm now realizes there are actually two distinct groups of consumers that purchase their product, with the following demand functions: Pith) = 168 71:11 Pan) = 234 %( Their total and marginal cost curves have not changed. If the rm wanted to successfully practice third-degree price discrimination: Part {c}: How many units of output would they sell to group 1 and how much will each consumer in group 1 pay? Part (d): How many units of output would they sell to group 2 and how much will each consumer in group 2 pay? Part is}: How much prot is earned by the rm when they practice third-degree price discrimination? Part {f}: How much did prots rise by when the rm switched to using price discn'mination
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