If a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 64800. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): CS=$0, welfare is W = $ 64800, and deadweight loss is

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.6P
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If a monopoly faces an inverse demand curve of
p=450-Q,
has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight
loss? How would these results change if the firm were a single-price monopoly?
Profit from perfect price discrimination () is $ 64800. (Enter your response as a whole number.)
Corresponding consumer surplus is (enter your response as whole numbers):
CS=$ 0,
welfare is
W = $ 64800,
and deadweight loss is
DWL = $0.
Profit from single-price profit-maximization is = $32400. (Enter your response as a whole number.)
Corresponding consumer surplus is (enter your response as whole numbers):
Transcribed Image Text:If a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 64800. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): CS=$ 0, welfare is W = $ 64800, and deadweight loss is DWL = $0. Profit from single-price profit-maximization is = $32400. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers):
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