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1. Consider the diagram. MC = 30 and FC =0 A. If the monopolist uses nonlinear pricing in which P = 70 for the first (a) Quantity Discrimination 20 and P = 50 for the next 20 s units, PS = 1,400. 3; 90 .2. B. Under perfect price q 70 $00 . discrimination, R = 3,600. 50 ---------- 5:200 C. Under uniform monopoly pricing 30 Z 35230 R = 1,800. D. B and C. O go Q. Units per day The firm charges 70 per unit for the first 20 units, 50 per unit for the next 20 units, and 30 per unit for any additional units demanded. MC = 30 and FC =0 (a) Quantity Discrimination a) Consumer surplus = 600. b) This outcome from this non- linear price discrimination system p'. 3 per unit is efficient. c) The profit from uniform Demand monopoly pricing = 900. d) All of the above. 90 0, Units per day 3. Assume MC = 0 Main Course Dessert Type A Consumers 30 5 Type B Consumers 25 10 Type C Consumers 20 15 A. If (pure) bundling is used, the revenuemaximizing price is $35 for the bundle. B. Under stand-alone pricing, revenue is maximized when P(main course) =$20 and P(dessert) =10. C. Pure bundling generates more revenue than stand-alone pricing. D. All of the above. The diagram applies to two-part pricing by a monopoly firm with identical consumers. D is demand of one of the consumers. FC =0 and MC = 10. A. The profit-maximizing 3\" per unit usage fee > 10. B. The firm earns profits = pm Access Fee. A\" 2,400 per consumer. C. The firm's market power leads to DWL. P\" \"H\" D. None of the above. Find mixed bundling price for hotel? Flight Hotel Bundle Albert 425 175 600 Lisa 450 75 525 Jenny 200 400 600 A. P(Hotel) 2 $400. B. P(Hotel) 2 $75. C. P(Hotel) 2 $175. D. P(Hotel) 2 $150