Suppose a monopoly sells to two identifiably different types of customers, A and B. The inverse demand curve for group A is PA = 20 - QA, and the inverse demand curve for group B is PB = 20 - 2QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 4, and the monopolist has no fixed costs. If the monopolist is unable to price discriminate (no reselling), (1) what are the profit maximizing price and quantity, and (2) what are the consumer surplus, profit, and deadweight loss?
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