Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me to complete both of the tables and the remaining questions. Also show appropriate solution steps for the numeric parts. Q5 Suppose that
Please help me to complete both of the tables and the remaining questions. Also show appropriate solution steps for the numeric parts.
Q5 Suppose that an unregulated price-discriminating monopolist has segregated its market into two groups of buyers as shown in the tables below for Market-1 and Market-2. Assume that MC is $13 in both markets and MC = AC at all output levels. Buyers in Market-1: Quantity Total Marginal AC TC Price MC Demanded Revenue Revenue $71 0 0 13 0 63 63 63 13 13 13 55 2 110 47 13 26 13 48 3 144 34 13 39 13 42 168 24 13 52 13 37 5 185 17 13 65 3 33 6 198 13 13 78 13 29 7 203 5 13 91 13 Buyers in Market-2: Quantity Total Marginal AC TC MC Price Demanded Revenue Revenue $115 0 13 0 100 100 100 13 13 13 83 2 166 66 13 26 13 71 3 213 47 13 39 13 63 4 252 39 13 52 13 55 5 275 23 13 65 13 48 6 288 13 13 78 13 42 7 294 6 13 91 1329 Buyers in Market-2: Quantity Total Marginal Price Demanded Revenue Revenue $115 0 0 100 1 100 83 2 166 71 213 63 252 55 225 48 288 42 294 ."l Complete the tables. ."l Based solely on these two prices, which market has the higher price elasticity of I demand? Why? 2 marks ."l What price will the rm charge in each market? Why? Price in market-1= Price in market-2 = because... I"! What will be this monopolist's total economic prot in these two markets? 2 marksStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started