Question

Suppose a monopolist faces consumer demand given by

P=600−22Q

with a constant marginal cost of

​$20

per unit​ (where marginal cost equals average total cost. assume the firm has no fixed​ costs).

If the monopoly can only charge a single​ price, then it will earn profits of

​

​(Enter your response rounded as a whole​ number.)

​Correspondingly, consumer surplus is

​However, if the firm were to practice price discrimination such that consumer surplus becomes​ profit, then, holding output constant at

145​,

the monopoly would have profits of

Answer 1

note: there is a typo in quantity 145 it should be 14.5 if its related to same question otherwise i dont know where its come from . I hope this would help you thank you !