Question
Please help me with these MCQs- 1.The inverse demand curve of a firm with market power is P = 60 - Q , and its
Please help me with these MCQs-
1.The inverse demand curve of a firm with market power is P = 60 - Q, and its marginal cost is MC = 2Q. If the firm decides to practice first-degree price discrimination, the deadweight loss will:
decrease from $45 to $15.
increase from $30 to $45.
increase from $0 to $65.
decrease from $37.50 to $0.
2.Suppose a firm faces the inverse demand curve, P = 100 - Q. Marginal cost is constant at $10. Suppose the firm uses block pricing, selling the first 45 units at $55 per unit, the next 20 units at $35 per unit, and the next 20 units at $15 per unit. The deadweight loss in this case is $____.
12.50
6.50
9.75
0
3.(Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services.
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