The market demand function for birthday cards in Greenwich Village is: P= 100 - 100. The total cost function for producing birthday cards is: C= 60+20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be?

The market demand function for birthday cards in Greenwich Village is: P= 100 - 100. The total cost function for producing birthday cards is: C= 60+20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 3E

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4. The market demand function for birthday cards in Greenwich Village is: P= 100 - 100. The
total cost function for producing birthday cards is: C = 60 + 20q. Suppose that a firm can
perfectly price discriminate (i.c. conduct first-degree price discrimination). How much will its
profits be?

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