Monopoly pricing, Business Economics

1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100   p:

(a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity?

(b) If its cost function is C (q) = 10+2q (i.e. the rm has a xed cost 10), what is the optimal level of price and quantity?

2. (price discrimination) A monopolist sells bikes in two markets with demand curves given by

 q1 (p1) = 100   2p1; q2 (p2) = 100   p2:

The monopolist has a constant marginal cost c = 20 and has no xed cost. If the monopolist can price discriminate, what price should it charge in each market?

Posted Date: 2/16/2013 12:16:40 AM | Location : United States







Related Discussions:- Monopoly pricing, Assignment Help, Ask Question on Monopoly pricing, Get Answer, Expert's Help, Monopoly pricing Discussions

Write discussion on Monopoly pricing
Your posts are moderated
Related Questions
What are development policies? Development policies are strategies adopted through governments, international agencies as like the IMF and non-government organisation (NGOs) a

using 8 units of production resource to produce 10,000 c0ws by a farmer how many sheep could he have produced

Why do markets work into promoting development? Liberal economists dispute a free market economy works since this gives incentives for self-generating growth. Particularly the

Find 1-3 articles that discuss the competition between Target and Walmart.

Your student union has decided to support a local charity by fund-raising on a Rag Day to be held in the town. Key events include a fancy dress relay race with teams sponsored by l

You are evaluating two (mutually exclusive) methods of strip-mining a resource-rich area. The alternatives are very similar, though one important difference is in the scale of the


explain four major managerial factors that affect diseconomies of scale

What are the restrictions of Lewis? The restrictions of Lewis: • Assumes complete employment in urban regions. Evidence recommend otherwise • Raised profits may be inves

What is the argument of advocates of World Bank in promotion of development? Advocates of the World Bank argue: • Loans and aid alone don’t guarantee development or the