Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and

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Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost curves are as shown.

a. Relative to the consumer surplus that would result at the socially optimal quantity and price, how much consumer surplus is lost from her selling at the monopolist's profit-maximizing quantity and price?

b. How much total surplus would result if Serena could act as a perfectly price-discriminating monopolist?

Related Book For answer-question

Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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Posted Date: Jul 19, 2019 10:40 AM

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Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and

Question:

$ per ounce 60 50 45 40 30 20 15 10 0 4 6 8 MR 12 Ounces/day 16 MC D 24 $ per ounce 60 50 45 40 30 20 15 10 0 4 6 8 MR 12 Ounces/day 16 MC D 24

Expert Answer:

A profitmaximizing single seller trades her perfume The following figure shows the demand and marginal cost curves for the seller a The socially optim... View the full answer

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