The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? The total number of rounds sold per week is 600 rounds. (Round your response to the nearest whole number) What would be the price on the last round sold? The price on the last round sold is $ 200 (Round your response to the nearest dollar) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect" price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price (dalars per round of ga 4 500- 450- 400- 350- 300 250- 200- 150- 100 50- MC ATC D MR 6100 200 300 400 500 600 700 800 900 1000 Quantity rounds of golf per week)

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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The diagram at right shows the demand curve, marginal revenue curve, and cost curves for
a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's
product is 18-hole golf games.
a. Now suppose the monopolist is able to charge a different price on each different unit sold.
What would be the total number of rounds of golf sold per week?
rounds. (Round your response to the
The total number of rounds sold per week is 600
nearest whole number)
What would be the price on the last round sold?
The price on the last round sold is $200 (Round your response to the nearest dollar)
b. What is the value of the consumer surplus if the monopolist cannot price discriminate
at all?
The value of the consumer surplus is $ 40000 (Round your response to the nearest dollar)
c. What is the value of the consumer surplus when the monopolist is practicing this "perfect
price discrimination?
The value of the consumer surplus is $ (Round your response to the nearest dollar)
Price (dalars per round of gan
47
500-
450-
400-
350-
300
250-
200-
150-
100
50-
MC
ATC
D
MR
6100 200 300 400 500 600 700 800 900 1000
Quantity rounds of golf per week)
Transcribed Image Text:The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? rounds. (Round your response to the The total number of rounds sold per week is 600 nearest whole number) What would be the price on the last round sold? The price on the last round sold is $200 (Round your response to the nearest dollar) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price (dalars per round of gan 47 500- 450- 400- 350- 300 250- 200- 150- 100 50- MC ATC D MR 6100 200 300 400 500 600 700 800 900 1000 Quantity rounds of golf per week)
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