Use the following to answer questions (1)-(6): Suppose a monopolist sells a product to consumers for which a particular consumer's choice is whether to buy 1 unit of the product or not to buy the product. In the absence of price discrimination, the market demand for the monopolist's product is: Q-150-%P. Further, the firm's short-run total cost is: TC-1000+ 1000. Now, knowing each consumer's reservation price, imagine the monopolist wishes to engage in first-degree price discrimination. [1] A particular consumer's reservation price corresponds to the maximum amount they a willing to pay to buy 1 unit of the product. A. B. Truc False [2] Wishing to maximize profit from first-degree price discrimination, the monopolist should sell a quantity equal to: A. B. C. D. 50 75 100 None of the above [3] Continuing question (2), at the quantity chosen the consumer willing to pay the least for the product has a reservation price exceeding $50.

Use the following to answer questions (1)-(6): Suppose a monopolist sells a product to consumers for which a particular consumer's choice is whether to buy 1 unit of the product or not to buy the product. In the absence of price discrimination, the market demand for the monopolist's product is: Q-150-%P. Further, the firm's short-run total cost is: TC-1000+ 1000. Now, knowing each consumer's reservation price, imagine the monopolist wishes to engage in first-degree price discrimination. [1] A particular consumer's reservation price corresponds to the maximum amount they a willing to pay to buy 1 unit of the product. A. B. Truc False [2] Wishing to maximize profit from first-degree price discrimination, the monopolist should sell a quantity equal to: A. B. C. D. 50 75 100 None of the above [3] Continuing question (2), at the quantity chosen the consumer willing to pay the least for the product has a reservation price exceeding $50.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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