There is a firm who is monopolist. Suppose that there are 20,000 potential customers with valuations uniformly distributed between £0 and £1000. A customer will purchase the products if her valuation is more than the firm's price. a) How many quantity will the firm sell if it sets a single price of £550? b) Write an equation for the firm's demand curve. c) If marginal cost is £100, what is the profit-maximizing price and quantity? What is consumer surplus and total welfare? Suppose that the firm can perfectly price discriminate. a) What is the profit-maximizing quantity now? b) What is consumer surplus and total welfare
There is a firm who is monopolist. Suppose that there are 20,000 potential customers with valuations uniformly distributed between £0 and £1000. A customer will purchase the products if her valuation is more than the firm's price. a) How many quantity will the firm sell if it sets a single price of £550? b) Write an equation for the firm's demand curve. c) If marginal cost is £100, what is the profit-maximizing price and quantity? What is consumer surplus and total welfare? Suppose that the firm can perfectly price discriminate. a) What is the profit-maximizing quantity now? b) What is consumer surplus and total welfare
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 19SQ
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There is a firm who is monopolist. Suppose that there are 20,000 potential customers with valuations uniformly distributed between £0 and £1000. A customer will purchase the products if her valuation is more than the firm's price.
a) How many quantity will the firm sell if it sets a single price of £550?
b) Write an equation for the firm's demand curve.
c) If marginal cost is £100, what is the profit-maximizing price and quantity? What is
Suppose that the firm can perfectly
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