Price discrimination of second degree

Assignment Help Business Management
Reference no: EM131311399

(Price Discrimination of Second Degree)

A monopolist has 2 sets of customers distinguished by their demand functions p1=15-p1 and p2=25-2(q2)respectively. The total cost function of the firm is of the form C(Q)=5+3Q , where Q=q1+q2

(a) Derive the aggregate demand function of the monopolist and draw it in a clearly labeled diagram.

(b) Derive the aggregate marginal revenue function and graph it in the same diagram.

(c) Derive the optimal uniform price and the equilibrium level of profit. Illustrate the equilibrium in the figure you drew for parts (a) and (b).

(d) Obtain the consumer surplus in each market under uniform pricing and the total producer surplus in the two markets combined.

(e) Now assume that the monopolist can practice group pricing. What are the profit maximizing prices and levels of consumer surplus in the 2 markets?

(f) Defining total surplus as the sum of consumer and producer surplus in the 2 markets, does price discrimination increase or reduce total surplus?

Reference no: EM131311399

Questions Cloud

Construct page business plan : You have completed all of the necessary sections of your business plan and will now create a final draft. Use any/all feedback you have received to polish your plan to the point that you could confidently show it to investors and potential partner..
Write down total revenue function of monopolist : (a) Write down the total revenue function of the monopolist. (b) Write down the marginal revenue function. (c) Calculate the equilibrium price and output of the monopolist.
Find the frequency response of an equivalent system : Find the frequency response of an equivalent system whose frequency response has five terms of ejv in the numerator and six terms of ejv in the denominator.
What buyer tools does biz2biz provide its membership : If you owned a business and wanted to join, what process would you have to go through? How much does it cost your organization to join Biz2Biz? What buyer tools does Biz2Biz provide its membership?
Price discrimination of second degree : A monopolist has 2 sets of customers distinguished by their demand functions p1=15-p1 and p2=25-2(q2)respectively. The total cost function of the firm is of the form C(Q)=5+3Q , where Q=q1+q2
Give examples of mergers of the vertical : 1. Give examples of mergers of the vertical, horizontal and conglomerate types. Use your own examples and explain why in each case. In what situations would a merger be a good idea?
Plot the magnitude of the frequency response of the system : Suppose that a system is described by the impulse response h(t) = 2sinc(t). Plot the magnitude of the frequency response of the system
Find out what at least three ecommerce marketers are saying : Find out what at least three e-commerce marketers are saying about personalized marketing using GPS-equipped cell phones and prepare an analysis of how the phones will be likely to be used when the technology is widely available.
Monopoly in equilibrium and the equilibrium price : (a) Find the total output produced by the monopoly in equilibrium and the equilibrium price. (b) What is the output produced by the monopoly in each of its two plants?

Reviews

Write a Review

Business Management Questions & Answers

  Increased use of cell phones throughout the world

With the increased use of cell phones throughout the world, understanding the rules of cell phone etiquette is extremely important. Discuss several cell phone etiquette tips and why they are important.

  Optimal consumption of good

Consider a consumer with utility function u(x1, x2) =min{2x1, x2} and income m who faces given prices p1 and p2. (a) Derive the demand function of good 1. (b) What is the optimal consumption of good 1 if m=6andp1 =p2 =1?

  What do you mainly hear gloria saying

What are your personal reactions to what Gloria is saying? how does it affect you? what are you feeling as you listen to her and What do you mainly hear Gloria saying?

  Interactionist perspective media analysis

Symbolic Interactionist Perspective Media Analysisa television program that you know contains a social inequality or social class theme (e.g. racism, sexism, social class categories).

  Long-term-short-term goals are vital for company

Discuss the importance of long-term and short-term goals and why they are vital in setting direction for the company.

  Nafta and formed an economic union

What would be the difference if the US, Canada, and Mexico re-negotiated NAFTA and formed an Economic Union? Do you think the new Economic Union would be more politically popular in Oklahoma or in California? Explain.

  Provide a long-term sustainable food supply

The characteristics that will enable your land to provide a long-term sustainable food supply.

  Managing the higher-ranged product brands

Determine any strategic partnerships the department store chain could develop that would help promote the higher-ranged-priced products and support the expansion in the west coast. Construct a strategy for managing the higher-ranged product brands...

  What is core competency of nike

Compare strengths, weaknesses, opportunities also threats of Nike to its competitors. How vision does also values affect how company will respond to each.

  Counter-mediation apply to the supply chain

Explain how the concepts of disintermediation, re-intermediation and counter-mediation apply to the supply chain.

  How does risk management impact an organization

How does risk management impact an organization? A. Affects the survivability B. Increases the profitability C. Does not affect the profitability D. Does not affect the survivability

  Today exhange rate system difference

Explain the exchange rate system that existed during the 1950s and 1960s. How di the Smithsonian Agreement in 1971 revise it? How does today's exhange rate system difference?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd