A monopolist with zero costs sells a good to two consumers. The inverse demands of a and b are, respectively, Pa(y) = 10 - 2y and Pb(y) = 10 - y 1- Suppose that the monopolist observes the demands of individuals and can therefore practice first degree discrimination. How many units will be purchased by consumers and at what price(s)? What are the consumers' surpluses and the monopolist's profits?
A monopolist with zero costs sells a good to two consumers. The inverse demands of a and b are, respectively, Pa(y) = 10 - 2y and Pb(y) = 10 - y 1- Suppose that the monopolist observes the demands of individuals and can therefore practice first degree discrimination. How many units will be purchased by consumers and at what price(s)? What are the consumers' surpluses and the monopolist's profits?
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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A monopolist with zero costs sells a good to two consumers. The inverse demands of a and b are, respectively, Pa(y) = 10 - 2y and Pb(y) = 10 - y
1- Suppose that the monopolist observes the demands of individuals and can therefore practice first degree discrimination. How many units will be purchased by consumers and at what price(s)? What are the
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