Question

Suppose that a monopoly sells in two markets with the following demands: Market A PA=1000-QAand Market...

Suppose that a monopoly sells in two markets with the following demands: Market A PA=1000-QAand Market B: PB=800-2QB. Its Total Cost function is given by: TC=200Q. If monopoly practices third degree price discrimination, what are its combined profits (combined from both markets)?

Select one: a. $205,000 b. $263,750 c. $295,280 d. $315,000 e. None of the above

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(a)    A firm wishes to third degree price discriminate to meet competition in two markets...
(a)    A firm wishes to third degree price discriminate to meet competition in two markets A and B. The firm’s total cost schedule is TC = $10*QA + $25*QB. Demands in the two markets are QA = 4,000*PA-1.5 and QB = 100,000*PA-2. The profit-maximizing prices to charge in markets A and B are: A         $20, $30.                     B.             $30, $50.                     C.             $40, $50                      D.             $60, $80                      E. None of the above. (b) Refer...
Suppose that a monopolist producing bicycles can divide the aggregate demand into two groups: The domestic...
Suppose that a monopolist producing bicycles can divide the aggregate demand into two groups: The domestic market and the foreign market. The demand curve for the monopolist’s product in the domestic market is y1=1200-10p1 and the demand curve for the monopolist’s product in the foreign market is y2=800-10p2. The monopolist’s total cost function is given by C(y)= 50y where y=y1+y2. a) Assume that the monopolist does not practice price discrimination. Calculate his/her profit-maximizing price-quantity combination and the maximum profit. b)...
A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under...
A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under 65 and senior citizens. Themonopolist’s marginal cost is MC = 0.05q, where q is the total output in both markets. The marginal cost does not depend on the market in which the goods are sold.The demand curves are !    Adults: PA = 25 – 1/6 × QA = 25 – 0.1667 × QA !    Seniors:        PS = 15 – c × QS = 15 – 0.125 ×...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the marginal cost of the last unit sold. II. A monopolist with positive marginal costs and facing a linear demand curve always sets a quantity (or price) such that it sells on the elastic section of the demand curve. III. A monopolist regulated by marginal-cost pricing regulation sells at a price that covers its variable and fixed costs of production, but it still causes a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT