A natural monopolist has total costs C(Q) = 500 + Q and faces market demand Q =
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A natural monopolist has total costs C(Q) = 500 + Q and faces market demand Q = 2000 - 2P
- Find CS, PS, and total surplus in a. CS = * (875 - 750) * 250 = 15625 PS = * (750 - 750) * 250 = 0 TS = CS + PS = 15625
- Assume he regulator allows two-part pricing. The monopolist's regulated price is set equal to marginal cost and the monopolist is allowed to freely choose and charge a fixed fee per consumer. Assume that the demand comes from 10 identical consumers. What fixed fee would a profit-maximizing monopolist set? How about total surplus, CS, and PS? P = MC MC = C'(Q) = 1 ??
I am stuck with question 2. please help me!
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
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