1. A monopolist is seeking to price discriminate by segregating the market. The

Question

1. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows:

Market A: P = 136 - 4Q
Market B: P = 162 - 3Q

The monopolist faces a marginal cost of $21 and has no fixed costs. Given this information, what price should the monopolist charge in Market B?

Round your answer to two decimal places. Do not include a $ sign.

Note: The demand equations presented above show P equal to a function of Q, rather than the usual other way around. This is so you can use the same trick used in Unit 11 to find the marginal revenue curve

2. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows:

Market A: P = 176 - 3Q
Market B: P = 181 - 4Q

The monopolist faces a marginal cost of $27 and has no fixed costs. Given this information, what is the difference between the total quantity the price-discriminating monopolist will supply across both markets and the total quantity that would be supplied in a perfectly competitive market with the same marginal costs for firms at equilibrium?

Round your answer to two decimal places. Do not include a $ sign. Your answer should be a positivenumber.

Note: The demand equations presented above show P equal to a function of Q, rather than the usual other way around. This is so you can use the same trick used in Unit 11 to find the marginal revenue curve.

3. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows:

Market A: P = 180 - 2Q
Market B: P = 101 - 4Q

The monopolist faces a marginal cost of $27 and has no fixed costs. Given this information, what are the monopolists total profits across both markets when they price discriminate?

Round your answer to two decimal places. Do not include a $ sign.

Note: The demand equations presented above show P equal to a function of Q, rather than the usual other way around. This is so you can use the same trick used in Unit 11 to find the marginal revenue curve.

Explanation / Answer

1- a monopolist is the onw hwo has the market power and thus produces output where MR = MC so that it is able to charge a markup over marginal cost.

so MRb = MC

162-6Q = 21 so Qb = 23.5

so monopoly prices are = 91.5

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