Suppose a monopolist faces the following market demand equation: Q=200 - 2P, where Q is the quantity demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following total cost (TC): TC = 50Q. (19] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the cumulative amount the firm should sell equals: A. 20 В. 40 C. 80 D. 100 [20] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then consumer surplus equals: А. S1200 В. $625 C. $400 D. None of the above [21] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the firm's profit will exceed $2000. A. True В. False
Suppose a monopolist faces the following market demand equation: Q=200 - 2P, where Q is the quantity demanded and P is the price charged to all customers. Furthermore, suppose the firm faces the following total cost (TC): TC = 50Q. (19] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the cumulative amount the firm should sell equals: A. 20 В. 40 C. 80 D. 100 [20] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then consumer surplus equals: А. S1200 В. $625 C. $400 D. None of the above [21] Rather than charge the same price to every consumer, if this firm can practice first degree price discrimination, then the firm's profit will exceed $2000. A. True В. False
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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