Suppose a monopolist faces consumer demand given by P=300-5Q with a constant marginal cost of $100 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). f the monopoly can only charge a single price, then it will earn profits of $ (Enter your response rounded as a whole number.) Correspondingly, consumer surplus is $ However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant at 20, the monopoly would have profits of $

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 15SQ
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Suppose a monopolist faces consumer demand given by
: 300 – 5Q
with a constant marginal cost of $100 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs).
(Enter your response rounded as a whole number.)
If the monopoly can only charge a single price, then it will earn profits of $
Correspondingly, consumer surplus is $
However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant at 20, the monopoly would have profits of $
P =
Transcribed Image Text:Suppose a monopolist faces consumer demand given by : 300 – 5Q with a constant marginal cost of $100 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). (Enter your response rounded as a whole number.) If the monopoly can only charge a single price, then it will earn profits of $ Correspondingly, consumer surplus is $ However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant at 20, the monopoly would have profits of $ P =
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