Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are two questions to this problem set please answer both: 1.) this market? A firm faces a demand function of q # 100 -

There are two questions to this problem set please answer both:

1.)

image text in transcribedimage text in transcribed
this market? A firm faces a demand function of q # 100 - 2p and has constant marginal cost of 20. Suppose the firm can perfectly price discriminate. What is consumer surplus inA monopoly with constant marginal costs of $50 can sell to three groups of potential consumers, with demands @ 1 - 800 - 0.2 p, 02 = 400 - p, and Q3 = 700 0.4 p respectively. Find the optimal price quantity combination in each market if the firm is able to price discriminate. 101 - 500, p1 - $905, (2 - 200, p2 - $150, 03 - 200, and pa = $960. (1 0 - 325, p1 - $1 800, 02 - 300, p2 - $175 03 - 140, and p3 = $850. -425, P1 $1,005, 02 - 100, p2 - $200, Q3 - 220, and p3 = $700. Q1 - 395, $2,025, 02 - 175, p2 = $225, 03- 340, and pa = $900

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles and Applications

Authors: Robert e. hall, marc Lieberman

5th edition

1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238

More Books

Students also viewed these Economics questions