A firm is in a monopoly market. The demand function (Qp) and total cost function (TC) of this firm can be written as: 1 Qp(p) = 30 – 5p - TC(Q) = 10Q + 200 Suppose that the firm would like to apply the second- degree price discrimination by setting different prices for each bloc of 5 units. A- Find Q, P (for each bloc) B- Find total profit C- Find social surplus

A firm is in a monopoly market. The demand function (Qp) and total cost function (TC) of this firm can be written as: 1 Qp(p) = 30 – 5p - TC(Q) = 10Q + 200 Suppose that the firm would like to apply the second- degree price discrimination by setting different prices for each bloc of 5 units. A- Find Q, P (for each bloc) B- Find total profit C- Find social surplus

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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