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Monopolist faces consumer demand

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Reference no: EM131725281

Suppose a monopolist faces consumer demand given by P=400-2Q with a constant marginal cost of ?$80 per unit? (where marginal cost equals average total cost. Assume the firm has no fixed? costs).

If the monopoly can only charge a single? price, then it will earn profits of____?

Correspondingly, consumer surplus is _____?$?

?However, if the firm were to practice price discrimination such that consumer surplus becomes? profit, then, holding output constant at 80?, the monopoly would have profits of ?$____?

Reference no: EM131725281

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