A monopoly has the demand schedule p = 210 − 0.2q and the marginal cost schedule MC = 20 + 0.8q (a) If it can practise first-degree price discrimination how much should it sell? (b) If it can practise second-degree price discrimination and it has already made the decision to sell the first 100 units at a price of £190, what price should it charge for the rest of the units it sells?

A monopoly has the demand schedule p = 210 − 0.2q and the marginal cost schedule MC = 20 + 0.8q (a) If it can practise first-degree price discrimination how much should it sell? (b) If it can practise second-degree price discrimination and it has already made the decision to sell the first 100 units at a price of £190, what price should it charge for the rest of the units it sells?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 10E

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