MicroCorp is a monopolist that provides services to many customers. MicroCorp is facing the following market demand: Q = 200 -0.8P MicroCorp's marginal cost for the service is: MC = 10Q. If the firm can perfectly price discriminate, what would be its variable profit? [Please choose the closest answer]

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter14: Indirect Price Discrimination
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MicroCorp is a monopolist that provides services to many customers. MicroCorp
is facing the following market demand:
Q = 200 -0.8P
MicroCorp's marginal cost for the service is:
MC = 10Q.
If the firm can perfectly price discriminate, what would be its variable profit?
[Please choose the closest answer]
$750
O $1,000
$250
$2,778
O $2,500
O $3,200
O $462
O $9,000
Transcribed Image Text:MicroCorp is a monopolist that provides services to many customers. MicroCorp is facing the following market demand: Q = 200 -0.8P MicroCorp's marginal cost for the service is: MC = 10Q. If the firm can perfectly price discriminate, what would be its variable profit? [Please choose the closest answer] $750 O $1,000 $250 $2,778 O $2,500 O $3,200 O $462 O $9,000
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