Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Calculate the monopolist's total revenue if the monopolist uses perfect price discrimination. price Q TR w/o price discrimination TR with perfect price discrimination $11 0
Calculate the monopolist's total revenue if the monopolist uses perfect price discrimination.
price | Q | TR w/o price discrimination | TR with perfect price discrimination |
$11 | 0 | - | - |
$5 | 15 | $75 | $75 |
$3 | 25 | $75 | $105 |
(4 marks)
c. Calculate the deadweight loss if the monopolist charges a single price.
DWL=1/2x(p2-p1) (qe-qm) Qe= efficient quantity and Qm= monopoly quantity.
0.5 x (5-3)(25-17.5)
=7.5
where do the 25 and 17.5 come. where are the numbers pulled from
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started