Market demand for the nuclear substance pluranium is given below, along with the TR for the given demand schedule. Pluranium is supplied to the world market by a monopolist. Suppose that the marginal cost of supplying an extra megatonne of pluranium is $20 and the business has FC=$60. Suppose that the monopolist can 3rd degree price discriminate and segregate market demand into two global regions - North world and South world - as follows: Price ($ per megaton) 80 70 60 50 North world 40 30 20 10 0 Quantity (megatons) 0 1 2 3 3 3 3 3 3 Price ($ per megaton) 80 70 60 50 South world 40 30 20 10 0 Quantity (megatons) 0 0 0 0 1 2 3 4 5 Given that they segregate the market, what is the profit that the monopolist makes?

Market demand for the nuclear substance pluranium is given below, along with the TR for the given demand schedule. Pluranium is supplied to the world market by a monopolist. Suppose that the marginal cost of supplying an extra megatonne of pluranium is $20 and the business has FC=$60. Suppose that the monopolist can 3rd degree price discriminate and segregate market demand into two global regions - North world and South world - as follows: Price ($ per megaton) 80 70 60 50 North world 40 30 20 10 0 Quantity (megatons) 0 1 2 3 3 3 3 3 3 Price ($ per megaton) 80 70 60 50 South world 40 30 20 10 0 Quantity (megatons) 0 0 0 0 1 2 3 4 5 Given that they segregate the market, what is the profit that the monopolist makes?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.2P

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