Question
Monopolist - an inverse demand curve P(Q) = 256 - 2Q and a cost function C(Q) = 5Q Suppose the monopolist uses two blocks in
Monopolist - an inverse demand curve P(Q) = 256 - 2Q and a cost function C(Q) = 5Q
Suppose the monopolist uses two blocks in adeclining-block pricing scheme. It charges a highprice, P1, on the first Q1 units(the firstblock) and a lowerprice, P2, on the next Q2Q1 units.
Under nonuniform pricing: Calculate theprofit-maximizing values for Q1and Q2.
- Quantity sold in the firstblock: ?
- Quantity sold in the secondblock: ?
Under welfare implications (uniform pricing model to a nonlinear pricing model with two blocks)
- Change in social surplus: ?
- Change in consumer surplus: ?
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Economic Change In Asia Implications For Corporate Strategy And Social Responsibility
Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud
1st Edition
1317286650, 9781317286653
