Assume integer quantities. The firm is a monopoly. The table below shows the demandschedule it faces, as well as its marginal cost of production. The production of the goodcreates a marginal external benefit equal to $19.135MWTP$35$29$24$18$11$6$1MC$2.50$3.50$6.50$8.50$13.50If the monopoly engages in perfect first-degree price discrimination, what is the marginal$10.50$12.50revenue of unit number 2?Round to two decimal places and do not enter the currency symbol. If your answer is$1.125, enter 1.13.

If a monopolist engages in first degree price discrimination, then for each unit of the good sold,…

Assume integer quantities. The firm is a monopoly. The table below shows the demand schedule it faces, as well as its marginal cost of production. The production of the good creates a marginal external benefit equal to $19. 1 2 3 4 6 MWTP $35 $29 $24 $18 $6 $11 $1 MC $2.50 $3.50 $6.50 $8.50 $10.50 $12.50 $13.50 If the monopoly engages in perfect first-degree price discrimination, what is the marginal revenue of unit number 2? Round to two decimal places and do not enter the currency symbol. If your answer is $1.125, enter 1.13.

Assume integer quantities. The firm is a monopoly. The table below shows the demand schedule it faces, as well as its marginal cost of production. The production of the good creates a marginal external benefit equal to $19. 1 2 3 4 6 MWTP $35 $29 $24 $18 $6 $11 $1 MC $2.50 $3.50 $6.50 $8.50 $10.50 $12.50 $13.50 If the monopoly engages in perfect first-degree price discrimination, what is the marginal revenue of unit number 2? Round to two decimal places and do not enter the currency symbol. If your answer is $1.125, enter 1.13.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 14E

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