Suppose a monopolist faces consumer demand given by P=400 - 20 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost assume the ferm has no fed costa). If the monopoly can only charge a single price, then it will eam profits of SEnter your response rounded as a whole number) Corespondingly, consumer surplus is $ However, f the fem were to practice price discrimination such that consumer surplus becomes profit then, holding output constant at 90, the monopoly would have profits of $
Suppose a monopolist faces consumer demand given by P=400 - 20 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost assume the ferm has no fed costa). If the monopoly can only charge a single price, then it will eam profits of SEnter your response rounded as a whole number) Corespondingly, consumer surplus is $ However, f the fem were to practice price discrimination such that consumer surplus becomes profit then, holding output constant at 90, the monopoly would have profits of $
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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