Suppose a monopolist faces the demand curve P = 120 - 20, has marginal cost curve MC = 20, and zero fixed costs. If the monopolist can perfectly price discriminate, which The monopolist sells 30 units at a profit of 1800. The monopolist sells 17 units at a profit of 1460. The monopolist sells 30 units at a profit of 900.
Suppose a monopolist faces the demand curve P = 120 - 20, has marginal cost curve MC = 20, and zero fixed costs. If the monopolist can perfectly price discriminate, which The monopolist sells 30 units at a profit of 1800. The monopolist sells 17 units at a profit of 1460. The monopolist sells 30 units at a profit of 900.
Chapter8: Monopoly
Section: Chapter Questions
Problem 5SQ
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Transcribed Image Text:Suppose a monopolist faces the demand curve P = 120 - 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true?
The monopolist sells 30 units at a profit of 1800.
The monopolist sells 17 units at a profit of 1460.
The monopolist sells 30 units at a profit of 900.
The monopolist sells 17 units at a profit of 730.
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