. The market demand function for birthday cards in Greenwich Village is: P= 100-100. The total cost function for producing birthday cards is: C = 60 +20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first- degree price discrimination). How much will its profits be?

. The market demand function for birthday cards in Greenwich Village is: P= 100-100. The total cost function for producing birthday cards is: C = 60 +20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first- degree price discrimination). How much will its profits be?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section14.4: Price Discrimination

Problem 4QQ

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4. The market demand function for birthday cards in Greenwich Village is: P =
100-100. The total cost function for producing birthday cards is: C = 60
+20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-
degree price discrimination). How much will its profits be?

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