A profit-maximizing monopolist faces demand p, = 150- 4 And suppose its marginal cost is q, what price should it charge if it charges one price for all consumers? What will be DWL., consumer surplus and producer surplus in that case? What prices should it charge to high demand and low demand consumers if it price discriminates according to quantity ? (Suppose there are two groups). What will be DWL, consumer surplus and producer surplus in that case?

A profit-maximizing monopolist faces demand p, = 150- 4 And suppose its marginal cost is q, what price should it charge if it charges one price for all consumers? What will be DWL., consumer surplus and producer surplus in that case? What prices should it charge to high demand and low demand consumers if it price discriminates according to quantity ? (Suppose there are two groups). What will be DWL, consumer surplus and producer surplus in that case?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...

See similar textbooks

Similar questions

Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?
How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?
Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?
If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?