Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the market for somegood, there are two distinct market segments with inverse demand functions givenby: P1[:01] =112Q1 P2[:02] =1BB 02 The monopolist sewing this

In the market for somegood, there are two distinct market segments with inverse demand functions givenby:

image text in transcribed
P1[:01] =112Q1 P2[:02] =1BB 02 The monopolist sewing this market has constant marginal costs '10. Assuming that the monopolist can prevent resale, the data that this monopolist is able to acquire from its consumers' social media platforms allows it to divide them into the two groups with inverse demands given above. Hint: this is thirddegree price discrimination. What quantities and prices will the monopolist charge to each group? Quantity sold to group 1: D. Enter the quantity rounded to one decimal place and use it in subsequent calculations, including the price calculation. Price charged to group 1: . Enter the price rounded to one decimal place and use it in subsequent calculations. Quantity sold to group 2: D. Enter the quantity rounded to one decimal place and use it in subsequent calculations, including the price calculation. Price charged to group 2: . Enter the price rounded to one decimal place and use it in subsequent calculations. What is the consumer surplus for each of the two market segments? Consumer surplus for group 1: D. Enter your answer rounded to one decimal place and use it in subsequent calculations. Consumer surplus for group 2: D. Enter your answer rounded to one decimal place and use it in subsequent calculations. Betore social media became popular, the monopolist was unable to acquire enough data to price discriminate in this market. What are the protmaximizing price and quantity under the unitorm pricing model? Hint: you need to derive the market curve, which writ he piecewise. This is the topic of Discussion 4 (reieased at the start of Week 6). Equilibrium quantity: . Enter the quantityr rounded to one decimal place and use it in subsequent calculationsI including the price calculation. Equilibrium price: . Enter the price rounded to one decimal place and use it in subsequent calculations. What is the consumer surplus for the market under uniform pricing? Consumer surplus: :|. Enter your answer rounded to one decimal place and use it in subsequent calculations. What is the impact of price discrimination on the consumers in this market? In other words, what is the change in consumer surplus when going from the singleprice monopolist to the discriminating monopolist? Assume that group size does not matter. Change in consumer surplus: I]. Enter your answer rounded to one decimal place. Include a negative sign if necessary. Hint: You shouid calculate CSfNonunitonn pricing]I CSfUhiiorm pricing}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Andersons Business Law and the Legal Environment

Authors: David p. twomey, Marianne moody Jennings

21st Edition

1111400547, 324786662, 978-1111400545, 978-0324786668

Students also viewed these Economics questions

Question

Define critical thinking. (p. 231)

Answered: 1 week ago