Monopolies and Price Discrimination: Q: #9

Monopolies and Price Discrimination Part 1: Price Discrimination- Answer the following questions. 1. If this unregulated monopolist $80 Price does not price discriminate, what would be the price and quantity? $70 2. How much profit would this MC monopoly earn at the profit $60 ATC maximizing quantity? $50 . What would be the socially optimal price and quantity for $40 this monopoly? 4. How much profit would this $30 monopolist earn at the socially optimal quantity? $20 5. Assume instead that this $10 monopoly finds a way to perfectly price discriminate. MR D What quantity would be 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 produced? Quantity (Tons) 6. What price would the monopolist charge if it can price discriminate? Explain. 7. How much profit would this monopoly earn if it price discriminates? 8. Explain why consume surplus disappears when this monopoly price discriminates? 9. Explain why deadweight loss disappears when this monopoly price discriminates