Question
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
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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