Question

3. (Figure: Price-Discriminating Monopolist 2) The perfectly price-discriminating monopolist in this diagram will produce units of output, and a single price monopolist would produce units of output. Consumer surplus under a perfectly price discriminating monopolist is dollars less than under a single-price monopolist. While, perfect price discrimination results in reduced consumer surplus, it (increases/decreases) producer surplus and ultimately results in deadweight loss that is (less than/equal to greater than the amount of deadweight loss found in a perfectly competitive market. (5 pts.) Price $10 - MC MR Demand 2 4 6 8 10 Quantity 4. The table below displays the willingness to pay of four people for tickets to the St. Louis Cardinals NLCS Series. Additionally, the St. Louis Cardinals face a constant marginal cost of $8 to sell the tickets. If the firm practiced perfect price discrimination it would sell tickets and its fotal revenues from the units that the firm decides to sell would equal dollars. Willingness to pay of Demand in Market for NLCS St. Louis Cardinals Ticket Person's Name reddie Freeman ike Matheny bert Pujols orge Brett Willingness to pay $100 $10 Marginal Cost S8 $8 $8

Answer 1

Perpetkruie disch monopolist will produce = sunits 4 sergle Price monopolist would produce = 4 units Con, surplus = o under perfelly price disc menepolit C.S. is less them sungle Pruie monopolist P. Bis disch increases ps. a resuls in DWL that ý quen the anat of Dw2 ni - perfelly comp norber Under Perfect Price disch 6 fairs decides to sell 3 tickets 4 total revenue = 100+ 10+50=160