Question
Assume a monopolist that has cost = 0, and can produce with no output constraint, The market consists of five consumers and each purchase one
Assume a monopolist that has cost = 0, and can produce with no output constraint, The market
consists of five consumers and each purchase one unit. Consumers have the following distribution of
willingness to pay: B1 = 1, B2= 0.8, B3= 0.6, B4= 0.4, and B5 = 0.2. What is the value created and
the price charged by the monopolist?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
