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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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