Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 9, Problem 10SQ
To determine
The total revenue of the monopolist.
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Students have asked these similar questions
A firm produces two kinds of products: Word and Excel. Both products are made by a monopolist.
Four consumers are considering buying these products. The first consumer's willingness-to-pay (WTP)
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WTP for Excel is 5. The third consumer's WTP for Word is 5, and her WTP for Excel is 8. Lastly,
the fourth consumer's WTP for Word is 1, and her WTP for Excel is 10. Assume that marginal costs
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price for each product? Also, compute the firm's profit under the optimal a la carte pricing.
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Now suppose that bundling is the only option. In other words, the monopolist only
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the firm's profit under the optimal bundling.
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A monopolist has four distinct groups of customers: group A has an elasticity of demand of
0.2, group B has an elasticity of demand of 0.8, group C has an elasticity of demand of 1.0, and
group D has an elasticity of demand of 2.0. The group paying the highest price for the product
will be group:
a) D.
b) C.
c) B.
d) A.
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. The accompanying graph shows the market demand curve for their product.
Price ($/unit)
1000 2000 3000 4,000
Quantity (units/month)
If Quick Buck and Pushy Sales decide to collude and work together as a monopolist, then together they should produce
Multiple Choice
3,000; $1
4,000; $2
D
2,000; $2
1,000; $3
units per month and charge
per unit.
Chapter 9 Solutions
Micro Economics For Today
Ch. 9.1 - Prob. 1GECh. 9.1 - Prob. 2GECh. 9.2 - Prob. 1YTECh. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQP
Ch. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQPCh. 9 - Prob. 10SQPCh. 9 - Prob. 11SQPCh. 9 - Prob. 12SQPCh. 9 - Prob. 13SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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