A firm with market power faces the demand function q = 4,000 - 40P. The firm's total
Question:
a. If the firm behaves as a single-price monopoly, identify the firm's optimal price and output level.
b. Demonstrate that the single-price monopolist's profit-maximizing choice of price and output also maximizes producer surplus.
c. Identify the output level that would maximize total surplus.
d. Identify the output level that a perfect price-discriminating monopolist would produce.
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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