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Suppose a monopolist faces consumer demand given by P = 700 - 10 with a constant marginal cost of $40 per unit (where marginal cost
Suppose a monopolist faces consumer demand given by P = 700 - 10 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost. assume the rm has no xed costs). If the monopoly can only charge a single price, then it will earn prots of $|:|. {Enter your response rounded as a whole number.) Correspondingly, consumer surplus is $|:|. However, if the rm were to practice price discrimination such that consumer surplus becomes prot, then, holding output constant at 330, the monopoly would have prots of $|:|
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