In panel b of Figure 12.4, the single-price monopoly faces a demand curve of p = 90 - Q and a constant marginal (and average) cost of m = $30. Find the profit-maximizing quantity (or price) using math. Determine the profit, consumer surplus, welfare, and deadweight loss?
Figure 12.4: Block Pricing

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(a) Block Pricing (b) Single-Price Monopoly E 90 $200 70 E=$450 60 $200 50 F = $900 B= $1,200 G= $450 $200 30 30 Demand Demand MR 20 40 90 30 90 Q, Units per day Q. Units per day Block Pricing Single Price Consumer Surplus, CS Producer Surplus or Profit, PS = T A+ C= $400 E= $450 F = $900 B= $1,200 Welfare, W = CS + PS Deadweight Loss, DWL A +B+ C= $1,600 E + F= $1,350 D= $200 G= $450 Pp$per unit Pa, $ per unit