Before social media became popular, the monopolist was unable to acquire enough data to price discriminate in this market. If the monopolist cannot price discriminate, it must treat the two segments above as a single market. The resulting market demand curve is piecewise: P(Q)= 252 − Q for 0 ≤ Q ≤ 84 210 − 1/2Q for Q > 84 What are the profit-maximizing price and quantity under the uniform pricing model? [Hint: you'll still need to use the monopolist rule but will need to determine the portion of the demand curve intersected by the marginal cost curve.] Equilibrium quantity ? (Round your answer to two decimal places and use it in subsequent calculations, including the price calculation.) Equilibrium price? (Round your answer to two decimal places and use it in subsequent calculations.) What is the consumer surplus for the market under uniform pricing? [Hint: I strongly suggest graphing the piecewise function. This is a kinked demand curve and the consumer surplus area is not a simple triangle.] Consumer surplus ? (Round your answer to two decimal places.)
Before social media became popular, the monopolist was unable to acquire enough data to price discriminate in this market. If the monopolist cannot price discriminate, it must treat the two segments above as a single market. The resulting market demand curve is piecewise: P(Q)= 252 − Q for 0 ≤ Q ≤ 84 210 − 1/2Q for Q > 84 What are the profit-maximizing price and quantity under the uniform pricing model? [Hint: you'll still need to use the monopolist rule but will need to determine the portion of the demand curve intersected by the marginal cost curve.] Equilibrium quantity ? (Round your answer to two decimal places and use it in subsequent calculations, including the price calculation.) Equilibrium price? (Round your answer to two decimal places and use it in subsequent calculations.) What is the consumer surplus for the market under uniform pricing? [Hint: I strongly suggest graphing the piecewise function. This is a kinked demand curve and the consumer surplus area is not a simple triangle.] Consumer surplus ? (Round your answer to two decimal places.)
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.1P
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Part B: Non-Discriminating Case.
Before social media became popular, the monopolist was unable to acquire enough data to price discriminate in this market. If the monopolist cannot price discriminate, it must treat the two segments above as a single market. The resulting market demand curve is piecewise:
P(Q)=
| 252 − Q | for 0 ≤ Q ≤ 84 |
| 210 − 1/2Q | for Q > 84 |
What are the profit-maximizing price and quantity under the uniform pricing model? [Hint: you'll still need to use the monopolist rule but will need to determine the portion of the demand curve intersected by the marginal cost curve.]
Equilibrium quantity ? (Round your answer to two decimal places and use it in subsequent calculations, including the price calculation.)
Equilibrium price? (Round your answer to two decimal places and use it in subsequent calculations.)
What is the consumer surplus for the market under uniform pricing? [Hint: I strongly suggest graphing the piecewise function. This is a kinked demand curve and the consumer surplus area is not a simple triangle.]
Consumer surplus ? (Round your answer to two decimal places.)
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