Estimate equilibrium price and output

Assignment Help Macroeconomics

Reference no: EM1312214

Consider a monopoly with a demand function D : P = 20 -Q

Let the cost function be C= 10+ Q + Q²

a) Calculate the monopoly equilibrium.

b) Calculate the consumer surplus.

c) Suppose this firm practices two-parts tariffs,

I) Calculate the optimal output.

II) Calculate the size of the optimal "membership fee".

d) Suppose this firm practices perfect price discrimination,

I) Calculate the optimal output,

II) Calculate the total amount of money the firm will charge.

Reference no: EM1312214

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