Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Q1) Consider a monopolist with cost function C (Q) = 3Q selling to two segments of consumers where Q is total output manufactured by monopolist in both markets. Inverse demands for each segment are given by P (q1) = 12 - q1 and P (q2) = 18 - (3/2)q. Resale among consumers is not possible.

a. If monopolist can only charge one price, what uniform price must monopolist set to maximize profits? How many units will monopolist sell? Will monopolist exclude either segment of the market?

b. If monopolist can charge different prices to either market segment, what prices must monopolist charge under third degree price discrimination to maximize profit? How many units will monopolist sell in either market? Compare your profits made under third degree price discrimination to what you found in a).

c. If monopolist can use single two-part tariff, compute two part tariff which will maximize firm's profits.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M922666

Have any Question? 


Related Questions in Macroeconomics

Economic development of latin americain the late 1980s and

Economic Development of Latin America In the late 1980s and early 1990s Latin America privatized most state enterprises. What was the rationale for privatization and what were some expected benefits and costs? What have ...

Jesus told us not to worry about tomorrow because we are to

Jesus told us not to worry about tomorrow because we are to focus on today and we are not promised tomorrow. (Mt. 6:34) Does this mean we should spend as much as we want and not save any for the future? Explain.

1 read the macroeconomics section of the article noise by

1. Read the Macroeconomics section of the article "noise" by Fischer Black and comment on the current state of the economy in that context. Just one page please. 2. Explain the role of the Federal Reserve Bank in regulat ...

Show a t-account for a bank when you make a deposit of 3000

Show a T-account for a bank when you make a deposit of $3000 into your checking account. Assume the reserve ratio is 15%. If the lending process continues as far as it can possibly go, how many deposit dollars will be cr ...

Suppose the north and south are trading cities and have the

Suppose the north and south are trading cities and have the following production of chocolate and coffee: North output per hour is 2 chocolate and 8 coffee. South output per hour 1 chocolate, 1 Coffee. Suppose the north ...

Need the answer in 150 wordswhat is currency overshooting

Need the answer in 150 words. What is currency overshooting? Using an example of a permanent decrease in money supply, explain with the help of graphs, how the money market and forex market respond to the change in the s ...

Economicsintroduction250wordsprovide an overview of the

Economics Introduction(250)words Provide an overview of the chosen economy of a country Production output performance analysis(500)words -real gdp , real gdp growth rate, real gdp per capita -define and explain how each ...

If you are investing 500000 today in a company that is

If you are investing $500,000 today in a company that is promising to pay $1,000,000 at the end of 20 years, what is your expected rate of return for this investment? 50.2% 4.35% 12% 10% 3.53% 20%

What is a mixed economywho are karl marx adam smith and

What is a mixed economy Who are Karl Marx, Adam Smith, and John Maynard Keynes? What were their contributions to economics? What are the characteristics of Primitive Communalism, the Slave economy, Feudalism, Socialism, ...

Discuss a scenario in which the use of leading indicators

Discuss a scenario in which the use of leading indicators for your industry or firm (or an industry or firm of your choosing, could be fictitious or general) might improve performance and promote better decision making. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro