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Suppose a monopolist faces consumer demand given by
11.1: Capti
P = 500 - 10
with a constant marginal cost of $80 per unit (where marginal cost equals average total cost assume the firm has no fixed costs).
11.2. Price
If the monopoly can only charge a single price, then it will earn profits of $
(Enter your response rounded as a whole number.)
11.3: Intert
Correspondingly, consumer surplus is $
However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant at 210, the monopoly would have
profits of $
Peak-Load
11.4: The
11.5: Bund
11.6: Adve
End of Cha