Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer Please answer all parts of the questions: Use the table below to answer the following questions: Quantity Marginal Revenue 1200 1000 800 600

please answer

image text in transcribed
Please answer all parts of the questions: Use the table below to answer the following questions: Quantity Marginal Revenue 1200 1000 800 600 400 Marginal Cost 500 275 225 250 400 500 Average Cost 500 388 333 313 330 358 a. If the firm could charge every consumer exactly what that consumer was willing to pay (called perfect price discrimination), would the quantity the firm produced increase, decrease, or remain the same? Would the firm's profits increase. decrease. or remain the same? Explain your answers. b. Are there consumers who want the product but are not willing to pay the profit- maximizing price the firm will charge? How can ou tell? c. If at least one consumer is willing to pay $1200 or this product. why won't the monopolist charge 51200? d. What Is this firm's profit-maximizing price? What is its profit-maximizing output? e. What is the firm's average profit? What is the firm's total profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Democracy And Public Administration

Authors: Richard C Box

1st Edition

1317473213, 9781317473213

More Books

Students also viewed these Economics questions

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago