A monopolist sells in two states and practices price discrimination by charging separateprices in each state. The monopolist produces at a total Cost of TC =2 + 40Q. Demand inmarket 1 is Qi= 600 – 30P1. Market 2 demand is Q2 = 900 – 30P2.%3D%3D-What price will be charged in each market?i-What Quantity will be produced in each market?iii-What is the total profit of the firm?iv-Which customer has an more elastic demand curve and why?v-What is the Consumer Surplus?

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prices in each state. The monopolist produces at a total Cost of TC = 2+ 40Q. Demand in market 1 is Qi= 600 – 30P1. Market 2 demand is Q2 = 900 – 30P2. %3D -What price will be charged in each market? i-What Quantity will be produced in each market? ii-What is the total profit of the firm? iv-Which customer has an more elastic demand curve and why? V-What is the Consumer Surplus?

prices in each state. The monopolist produces at a total Cost of TC = 2+ 40Q. Demand in market 1 is Qi= 600 – 30P1. Market 2 demand is Q2 = 900 – 30P2. %3D -What price will be charged in each market? i-What Quantity will be produced in each market? ii-What is the total profit of the firm? iv-Which customer has an more elastic demand curve and why? V-What is the Consumer Surplus?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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