6. There are two types of customers in the market. The first type has a demand...
6. There are two types of customers in the market. The first type has a demand function Q=120-P, and the second type has a demand function Q=90-P. The monopolist has a marginal cost of 20, and zero fixed costs. Solve for the optimal single two-part tariff.
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6. There are two types of customers in the market. The first
type has a demand...
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p ....
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p . The other has demand function D2(p)=20-2p. The only firm in this market has constant marginal cost of 2. (2nd-degree price discrimination) Given the market as described in the above question, suppose the monopolist cannot identify the two consumers, but he can use a single two-part tariff. (a)Find out the optimal fixed fee and per-unit price. (b)Is it more profitable to serve both consumers or...
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p ....
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p . The other has demand function D2(p)=20-2p. The only firm in this market has constant marginal cost of 2. (2nd-degree price discrimination) Given the market as described in the above question, suppose the monopolist cannot identify the two consumers, but he can use a single two-part tariff. (a)Find out the optimal fixed fee and per-unit price. (b)Is it more profitable to serve both consumers or...
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p ....
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p . The other has demand function D2(p)=20-2p. The only firm in this market has constant marginal cost of 2. (1) Draw the two demand curves in a graph, with price on the vertical axis and demand on the horizontal axis. (2) (3rd-degree price discrimination) If the monopoly can identify the two consumers and charge different prices to them, what is the optimal price charged to...
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p ....
1. Suppose there are two potential customers in the market. One has demand function D1(p)=10-p . The other has demand function D2(p)=20-2p. The only firm in this market has constant marginal cost of 2. (1) Draw the two demand curves in a graph, with price on the vertical axis and demand on the horizontal axis. (2) (3rd-degree price discrimination) If the monopoly can identify the two consumers and charge different prices to them, what is the optimal price charged to...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
Suppose there is a monopoly in the market whose consumers are one of two types (A...
Suppose there is a monopoly in the market whose consumers are one of two types (A and B). The (inverse) demand of type A consumers are given by P = 60 −QA/4 and the (inverse) demand for type B consumers are given by P = 45 −QB/2 . Suppose that this monopolist has a constant marginal cost of production of MC(q) = 18.25 + Q/6 . Solve for the equilibrium price charged to each type of consumer and the equilibrium...
ow our monopolist faces two types of customers: Type A has the inverse demand functi -300-5QA...
ow our monopolist faces two types of customers: Type A has the inverse demand functi -300-5QA while type B has the inverse demand function P 150-5QB. The total function is still C 50Q 4a) If the monopolist can only charge uniform, linear prices but can distinguish between the two types and prevent resale (G.e., third-degree group price discrimination), what price will it charge on cost each type, and how much will each type buy and how much consumer surplus will...
A monopolist has two specific demanders with demand equations: A = 10-p and B = 10...
A monopolist has two specific demanders with demand equations: A = 10-p and B = 10 -2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform price p for each unit consumed. The monopolist chooses a and p to maximize profits. This monopolist produces at constant average and marginal costs of AC = MC = 2. The monopolist's profits are and the...
A monopolist has two specific demanders with demand equations: A = 10 - p and B...
A monopolist has two specific demanders with demand equations: A = 10 - p and B = 10-2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform price p for each unit consumed. The monopolist chooses a and p to maximize profits. This monopolist produces at constant average and marginal costs of AC = MC = 2. The monopolist's profits are and...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
ow our monopolist faces two types of customers: Type A has the inverse demand functi -300-5QA while type B has the inverse demand function P 150-5QB. The total function is still C 50Q 4a) If the monopolist can only charge uniform, linear prices but can distinguish between the two types and prevent resale (G.e., third-degree group price discrimination), what price will it charge on cost each type, and how much will each type buy and how much consumer surplus will...
A monopolist has two specific demanders with demand equations: A = 10-p and B = 10 -2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform price p for each unit consumed. The monopolist chooses a and p to maximize profits. This monopolist produces at constant average and marginal costs of AC = MC = 2. The monopolist's profits are and the...
A monopolist has two specific demanders with demand equations: A = 10 - p and B = 10-2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform price p for each unit consumed. The monopolist chooses a and p to maximize profits. This monopolist produces at constant average and marginal costs of AC = MC = 2. The monopolist's profits are and...
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