+1-415-670-9189
info@expertsmind.com
Unable to distinguish between the two types of consumers
Course:- Microeconomics
Reference No.:- EM13700143




Assignment Help
Assignment Help >> Microeconomics

Suppose there are two types of consumers: Type A and Type B. The demands for a monopolist’s product for each type of consumers are given by:

Type A: Q = 80 – 2P

Type B: Q = 60 – 3P

Assume the marginal cost of production is constant and MC = 4, and there are no fixed costs.

a) Suppose the firm is unable to distinguish between the two types of consumers, and therefore cannot engage in price discrimination. Sketch the demand curve facing the firm. Make sure your graph is accurate and carefully labeled.

b) What price will the monopolist charge?

c) How much profit will the monopolist make?

d) If the monopolist is able to charge different prices to each type of consumer, what price will she charge to type A consumers?

e) If the monopolist is able to charge different prices to each type of consumer, what price will she charge to type B consumers?

f) How much profit will the monopolist make if it can price discriminate?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
ABC uses job-order costing. It applies overhead cost to jobs on the basis of direct labor-hours. For the current year the company estimates that it will work 20,000 direct lab
Explain how financial institutions fit into the circular flow diagram (and more specifically why they are important for economic stability and growth). In your own words, ex
A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the community are $500,000 per year. If it produc
Submit an essay (at least 250 words) - posting it inside the forum for feedback and comments by your classmates.In terms of your study in this course, how might you know that
Suppose a 10% change in the price of gasoline decreases the quantity of gasoline demanded by .5%. Calculate the elasticity of demand and determine whether the demand is elas
To help fight the problem of nonpoint source pollution associated with agricultural runoff, your state is contemplating charging an annual fee of $500 to every seller of pes
you are required to pick a current economic topic that relates to the material we have covered or will cover in this course. You will research and find an article that cover
I know that according to Max Weber--religion, economics,or culture are intertwined with each other. Can it be said that Protestantism and urbanization in Western Europe are al