Suppose a monopolist faces the following demand curve: Price Quantity (Dollars per unit) (Units) 300 7 400 6 500 5 600 4 700 800 900 1 1,000 Refer to Table 15-2. The monopolist has fixed costs of $1,000 and has a constant marginal cost of $2 per unit. If the monopolist were able to perfectly price discriminate, how many units would it sell? 500 400 900 4,200 3. 2.

Suppose a monopolist faces the following demand curve: Price Quantity (Dollars per unit) (Units) 300 7 400 6 500 5 600 4 700 800 900 1 1,000 Refer to Table 15-2. The monopolist has fixed costs of $1,000 and has a constant marginal cost of $2 per unit. If the monopolist were able to perfectly price discriminate, how many units would it sell? 500 400 900 4,200 3. 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What determines whether or not a monopolist is able to charge different prices for the same product? Discuss the conditions necessary for successful price discrimination and offer a few examples where you think price discrimination is being practiced. Remember that the product has to be the same for it to be price discrimination. So if I pay more for overnight delivery of an item I am paying for that convenience and it is not price discrimination
Subject: economics
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