Question
Refer to the graph above. A) If the monopolist in the graph were a single price monopolist should produce _40____units, charge ________per unit and earn
Refer to the graph above.
A) If the monopolist in the graph were a single price monopolist should produce _40____units, charge ________per unit and earn __________in profit.
B) Refer to the graph above. If the market quantity demanded at the price of $0.60 is 4 units, and market quantity demanded at the price of $0.20 is 8 units, then to increase its profit the monopolist should engage in ____________________ price discrimination and ____________________ .
a) First, charging all consumers, the higher price of $0.80 and selling 2 units. b) Third charging all consumers $0.20 in order to increase quantity sold to 8 units. C) Second; selling 4 units for $0.60 each, then selling an additional 4 units for $ 0.20 each. D) Second; selling 2 units for $0.80 each, then selling an additional 6 units for $0.20 each.
C) Refer to your answer in part B and calculate the monopolist's profit resulting from the successful price discrimination.
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