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Market demand for the nuclear substance pluranium is given below, along with the TR for the given demand schedule. Pluranium is supplied to the world
Market demand for the nuclear substance pluranium is given below, along with the TR for the given demand schedule. Pluranium is supplied to the world market by a monopolist. Suppose that the marginal cost of supplying an extra megatonne of pluranium is $20 and the business has FC=$60. W 530 u so 570 1 $70 $60 2 $120 $50 3 $150 $40 4 $160 $30 5 $150 $20 6 $120 $10 7 $70 $0 8 so Suppose now that the monopolist is able to engage in lst degree (perfect) price discrimination. What quantity of pluranium will it choose to sell? A rm that engages in lst degree price discrimination will charge a price equal to the willingness to pay for each unit, and will supply every unit on which it can at least cover the opportunity cost of production (MC)
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