Question: A Monopoly has the following total cost function and demand functions TC = 20Q P=400-Q Suppose that monopoly decides to practice 2nd degree price discrimination,

A Monopoly has the following total cost function and demand functions

TC = 20Q

P=400-Q

Suppose that monopoly decides to practice 2nd degree price discrimination, as follows: it charges $360 for the first 40 units of outputs and $320 for the next 20.

a. What is the monopoly's profit with 2nd degree price discrimination? Profits = ?

b. What is consumer surplus? CS= ?

c. What is deadweight loss? DWL=?

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