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Suppose a monopolist faces consumer demand given by P=5005Q with a constant marginal cost of $100 per unit(where marginal cost equals average total cost. assume
Suppose a monopolist faces consumer demand given by
P=5005Q
with a constant marginal cost of $100 per unit(where marginal cost equals average total cost. assume the firm has no fixedcosts).
If the monopoly can only charge a singleprice, then it will earn profits of $
8000
Correspondingly, consumer surplus is $
4000
However, if the firm were to practice price discrimination such that consumer surplus becomesprofit, then, holding output constant at 40, the monopoly would have profits of _______?
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