Price discriminationa monopolist is selling the same, Ask an Expert

Economics

Price Discrimination.

A monopolist is selling the same product in two different markets, the West Coast and the East Coast. The demand for the product is larger in the West Coast:

Demand in the East Coast: P =10 - Q Demand in the West Coast: P = 20 - Q

a) What price would the monopolist charge in each market?

Suppose now that a new regulation states that this product should be sold at the same price in every market.

b) What price would the monopolist charge?

c) Compare consumer surplus and the monopolist profits before and after the regulation.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91344032

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