Use the following to answer questions (19) - (21): Suppose a monopolist faces the following market demand equation: Q = 200 - 2P, where Q is the quantity demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following total cost (TC): TC = 50Q. [19] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the cumulative amount the firm should sell equals: А. 20 В. С. 40 80 D. 100 [20] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then consumer surplus equals: А. В. $1200 $625 $400 None of the above С. D. [21] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the firm's profit will exceed $2000. А. True B. False
Use the following to answer questions (19) - (21): Suppose a monopolist faces the following market demand equation: Q = 200 - 2P, where Q is the quantity demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following total cost (TC): TC = 50Q. [19] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the cumulative amount the firm should sell equals: А. 20 В. С. 40 80 D. 100 [20] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then consumer surplus equals: А. В. $1200 $625 $400 None of the above С. D. [21] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the firm's profit will exceed $2000. А. True B. False
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.6P
Related questions
Question
![Use the following to answer questions (19) - (21):
Suppose a monopolist faces the following market demand equation: Q= 200 - 2P, where Q is the quantity
demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following
total cost (TC): TC = 50Q.
[19] Rather than charge the same price to every consumer, if this firm can practice first degree price
discrimination, then the cumulative amount the firm should sell equals:
А.
20
В.
40
С.
80
D.
100
[20]
discrimination, then consumer surplus equals:
Rather than charge the same price to every consumer, if this firm can practice first degree price
A.
$1200
В.
C.
$625
$400
D.
None of the above
[21] Rather than charge the same price to every consumer, if this firm can practice first degree price
discrimination, then the firm's profit will exceed $2000.
А.
True
В.
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9502bb61-126b-4d14-a250-0f4f2477c921%2F263a78b4-c50f-43f6-8e9b-701a183f73d2%2Fjb26d8c_processed.png&w=3840&q=75)
Transcribed Image Text:Use the following to answer questions (19) - (21):
Suppose a monopolist faces the following market demand equation: Q= 200 - 2P, where Q is the quantity
demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following
total cost (TC): TC = 50Q.
[19] Rather than charge the same price to every consumer, if this firm can practice first degree price
discrimination, then the cumulative amount the firm should sell equals:
А.
20
В.
40
С.
80
D.
100
[20]
discrimination, then consumer surplus equals:
Rather than charge the same price to every consumer, if this firm can practice first degree price
A.
$1200
В.
C.
$625
$400
D.
None of the above
[21] Rather than charge the same price to every consumer, if this firm can practice first degree price
discrimination, then the firm's profit will exceed $2000.
А.
True
В.
False
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