Profit from moving from single-price monopolist

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Reference no: EM131392217

Suppose a monopolist firm produces a medicin and can engage in 3rd price discrimination. MC=$8. In US, demand function: Qus=20-0.5P; In Canada, demand: Qcan=20-P. if the monopolist charge same price in US and Canada, the relevant portion of demand curve Qtotal=40-1.5P.

If the firm has to charge the same price in both markets, it will charge____$17.33

if the monopolist can change separate prices in Canada and US, in Canada it will charge____$14. In US it will charge______

the firm has no fixed costs, determine the change in profit from moving from a single-price monopolist to a 3rd degree price discriminator_____$33.33

Reference no: EM131392217

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