Question

A monopolist is going to try a first-degree price
discrimination scheme. The demand for their product is given by QD
= 71 - 5P The marginal cost of the good is a constant $6 per unit.
Calculate the dollar amount of producer surplus for this
first-degree price discriminating monopolist.

Answer #1

1. Suppose that a monopolist engages in first-degree price
discrimination. Which of the following statements is true?
a. Consumers receives all the economic surplus.
b. The economic surplus is equally distributed between the
consumers and the monopolist.
c. The monopolist receives all the economic surplus.
d. Total surplus is not maximised ( there is a deadweight
loss)
e. None of these.
2.
A monopolist has no fixed costs and a constant marginal cost
equal to $4 per unit.
Suppose that...

3. Suppose that a price-searcher monopolist had a total cost
function given by: TC= 20 + 2Q +0.25Q2.
The demand for the price searcher's product is given by:
QD= 100 -5P.
Calculate the price the monopolist will charge.
(Do not include a dollar sign in your response. Round to the
nearest two decimals.)
4. Suppose that a price-searcher monopolist had a total cost
function given by: TC= 20 + 2Q +0.25Q2.
The demand for the price searcher's product is given...

Assume that a pure 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.
Total
Marginal
Total
Marginal
Quantity
Price
revenue
revenue
cost
cost
0
$34
$______
$ 20
1
32
______
$______ ...

We are considering a monopoly facing the demand QD = 400−5P ⇔ P
= 80−0.2QD. Its marginal cost is MC = 0.2Q − 4. (a) Find the
monopolist’s marginal revenue equation. (b) Find the monopoly price
and quantity in the market and display them in a graph below. Q $
(c) Is this new quantity produced efficient? Explain (d) Suppose
the monopolist is able to perfectly price discriminate. What
quantity will it sell, at what price? (e) Calculate and compare...

(3rd Degree Price Discrimination) Consider a
monopolist serving two identifiably distinct markets with no resale
possible, so that the monopolist may practice third-degree price
dis- crimination. Demand in market 1 is given by
D1(p1) = 800 −
8p1 and demand in market 2 is given by
D2(p2) = 1200 −
12p2. Marginal cost is constant, M C =
10, and there is no fixed cost.
A) Find the marginal revenue curve in each
market, M R1(q1) and M
R2(q2).
B)...

For a monopoly that practices first-degree price discrimination,
how would a one dollar per-unit tax affect the monopoly’s output,
consumer surplus, producer surplus, and total surplus? a graph
would be helpful

A. First Degree Price discrimination: Honest Sanjay’s Use of
First-Degree Price Discrimination
Lecture #3 and Lecture PPT #2 contains information about
Sanjay's Used Car. Given FC = 5 and
MC = 2 without price discrimination and MC =3 with price
discrimination to hire a better salesman who can find the
customers’ reservation prices
1. Suppose that Sanjay moves his business to a larger city where
demand is P = 20 - Q. Marginal cost conditions are the same. What
price...

12. A price-searcher firm wants to try a two-part tariff. The
firm's marginal cost is a constant $3 and it will
charge that as the per unit price. To complicate things, the firm
has two different groups of consumers. There are
50 consumers who have a demand function given by:
qD=18-0.5P. There are also
20 consumers who have a demand function given by:
qD=18-0.5P.
If the firm charges a fee that is too high, then it may lose all
of...

Question #4
(3rd Degree Price Discrimination)
A Monopolist selling a cell phone in two separate markets. They
must decide how much to sell in each market in order to maximize
their total profits.
The demand in the Brazilian Market is
:
QBrazil = 200 – 10PBrazil
The demand in the United States Market
is:
QUSA = 60 – 20PUSA
If Total Cost is: TC = 90 + 2(QUSA
+QBrazil)
Calculate the Price and Quantity if the Monopolist Maximized...

If a monopoly engages in first-degree price discrimination?
a-deadweight loss is maximized
b-consumer surplus is maximized
c-social surplus is maximized
d-producer surplus is minimized

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