Suppose that you're working to calculate a monopolist's profit-maximizing uniform price in a market where the inverse demand function is P(y) = 52-3y and you've reached the point that you know the monopolist's profit maximization condition is 52-6y = 4 What is the profit-maximizing QUANTITY? y = 8 y = 14 Y= 28

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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Suppose that you're working to calculate a monopolist's profit-maximizing uniform
price in a market where the inverse demand function is
P(y) = 52 - 3y
and you've reached the point that you know the monopolist's profit maximization
condition is
52-6y = 4
What is the profit-maximizing QUANTITY?
y = 8
y = 14
y = 28
and you've reached the point that you know the monopolist's profit maximization
condition is
52-6y = 4
What is the profit-maximizing QUANTITY?
O y = 8
y = 14
y = 28
y = 9
If a monopolist can carry out perfect price discrimination, the outcome in the market
will be:
Pareto Efficient, as in Perfect Competition
Inefficient, exactly as under Monopoly Uniform Pricing
Between the Efficiency of Perfect Competition and the Inefficiency of Uniform
pricing
Transcribed Image Text:Suppose that you're working to calculate a monopolist's profit-maximizing uniform price in a market where the inverse demand function is P(y) = 52 - 3y and you've reached the point that you know the monopolist's profit maximization condition is 52-6y = 4 What is the profit-maximizing QUANTITY? y = 8 y = 14 y = 28 and you've reached the point that you know the monopolist's profit maximization condition is 52-6y = 4 What is the profit-maximizing QUANTITY? O y = 8 y = 14 y = 28 y = 9 If a monopolist can carry out perfect price discrimination, the outcome in the market will be: Pareto Efficient, as in Perfect Competition Inefficient, exactly as under Monopoly Uniform Pricing Between the Efficiency of Perfect Competition and the Inefficiency of Uniform pricing
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