Question
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
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
