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Suppose a profit-maximizing monopolist producing Q units of output faces the demand curve Q = 40 - P. Its total cost when producing Q units
Suppose a profit-maximizing monopolist producing Q units of output faces the demand curve Q = 40 - P. Its total cost when producing Q units of output is TC = 30 + Q 2 . The fixed cost is sunk. Compute the total profit and producer surplus with : a) no price discrimination (5 marks) b) perfect first-degree price discrimination
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
