What price will it charge if it cannot price discriminate? How many units will it sell? Does monopolist prefer to price-discriminate or to apply uniform pricing? Hand written solutions are strictly prohibited
What price will it charge if it cannot price discriminate? How many units will it sell? Does monopolist prefer to price-discriminate or to apply uniform pricing? Hand written solutions are strictly prohibited
Chapter8: Monopoly
Section: Chapter Questions
Problem 9SQP
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Question
A monopolist sells to two groups of consumers who have demand curves given as follows:
q1 (p1) = 100-p1
q2 (p2) = 100-2p2
The monopolist’s marginal cost is constant at $20 per unit, and there are no fixed costs.
What price will it charge if it cannot price discriminate ? How many units will it sell?
Does monopolist prefer to price-discriminate or to apply uniform pricing?
Hand written solutions are strictly prohibited
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