Question
If you could please provide a detailed explanation that would be greatly appreciate, thank you In a monopoly market, suppose the linear MC intersects MR
If you could please provide a detailed explanation that would be greatly appreciate, thank you
In a monopoly market, suppose the linear MC intersects MR at 15 units of output. At this level of output, MR and MC are $2. The price that the monopolist charges is given as $5. MC also intersects the linear demand curve at 25 units of output. At this level, P and MC are $3. The price is $11 when demand is zero.
a.Calculate the monopolist's total revenue if the monopolist charges a single price.
b.Calculate the monopolist's total revenue if the monopolist uses perfect price discrimination.
c.Calculate the deadweight loss if the monopolist charges a single price.
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