Draw the graph. If the monopoly is a price-discriminating monopoly charging some customers P1= $950 and other customers P2=$400, then: 1. At the price P1= $950, the monopoly will sell a quantity Q1 = ______ 2. At the price P2= $400, the monopoly will sell a quantity Q2 = ______. (Obs: calculation required here!) 3. Total quantity sold at both prices is Q3 = Q1 + Q2 = ___________.
Draw the graph. If the
1. At the price P1= $950, the monopoly will sell a quantity Q1 = ______
2. At the price P2= $400, the monopoly will sell a quantity Q2 = ______. (Obs: calculation required here!)
3. Total quantity sold at both prices is Q3 = Q1 + Q2 = ___________.
4. The profit earned from selling the quantity Q1 at P1 is Profit1 = ____________________(identify the area on the graph and calculate it).
5. The profit earned from selling the quantity Q2 at P2 is Profit2= ____________________(identify the area on the graph and calculate it).
6. The total profit earned by the price discriminating monopolist is Profit = Profit1 + Profit2 = _______.
Step by step
Solved in 2 steps
