4. The market demand function for birthday cards in Greenwich Village is: P = 100-100. The total cost function for producing birthday cards is: C = 60 +20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first- degree price discrimination). How much will its profits be?

4. The market demand function for birthday cards in Greenwich Village is: P = 100-100. The total cost function for producing birthday cards is: C = 60 +20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first- degree price discrimination). How much will its profits be?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 7CQ

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Question

4. The market demand function for birthday cards in Greenwich Village is: P=
100 - 100. The total cost function for producing birthday cards is: C = 60
+ 20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-
degree price discrimination). How much will its profits be?
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