4 5 Multiple Choice Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would earn maximum profits of O $675. $325. $800. 200 175 $450. 500 680

3. Use the diagram to show that a price discriminating monopolist earns more profit than one charging a single price. Show further that he enjoys a greater profit the more he can discriminate (that is, the more different prices he can charge). Р 90 80 70 50 40 30 20 10 MC MR 1 2 3 4 5 6 7 8 9 Q

The table below shows a portion of the demand schedule faced by a monopoly firm. Based on the table, the marginal revenue of the third unit of output equals Table 8-3 Price $12 $11 $10 $9 a. $1 b. $10 c. $8 d. $12 O e. $6 00000 Quantity 1 2 3 4

s Assume that a monopolist is able to engage in perfect price discrimination and sell each unit of the product at a price equal to the maximum price the buyer of that unit of the product would be willing to pay. Complete the table below by computing total revenue and marginal revenue for the price discriminating monopolist. Quantity Price Total revenue Marginal revenue Total Cost Marginal cost 0 $34 $ 1 32 30 28 26 24 22 20 18 16 14 234SSN 5 6 7 89 10 $ $20 36 46 50 54 56 64 80 100 128 160 $ (a) What is the marginal revenue that the discriminating monopost obtains from the sale of each additional unit? (b) How many units would be produced and what would be the total revenue for the perfectly discriminating monopolist? What would economic profits be? (c) Compare the economic effects of price discrimination to no price discrimination for the pure monopolist in terms of profits and the level of output.