EBK MICROECONOMICS
EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
Question
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Chapter 12, Problem 10P

(a)

To determine

The best single price charged by the monopolist.

(b)

To determine

The price charged by monopolist while engaging in price discrimination.

(c)

To determine

The profit in different price is greater than profit under single price.

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The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Not all numbers in the answer bank will be used. Quantity Price Marginal cost Marginal revenue 1 $13 $3 $13 Answer Bank 2 $12 $4 $6 $8 $4 3 $11 $5 $9 $1 $2 $11 $5 4 $10 $6 $9 $7 $3 $10 $0 $12 $7 $8 $8 How many units does the monopolist produce? units
You are a monopolist with 15 potential buyers for the two video games you sell, VG1 and VG2. You can produce each of these games at constant marginal cost of $1. There are 3 different types of clients: type A (3 of them), type B (5 of them) and type C (7 of them).
A firm facing a downward sloping demand curve is producing a level of output at which price is $16, marginal revenue is $12, and average total cost, which is at its minimum value, is $8. In order to maximize profit, the firm should decrease price. A monopolist is producing a level of output at which price is $138, marginal revenue is $72, average total cost is $72, and marginal cost is $103. In order to maximize profit, the firm should output. A firm with market power is producing a level of output at which price is $19, marginal revenue is $12, average variable cost is $14, and marginal cost is $26. In order to maximize profit, the firm should price.
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