Question: For Questions 2 3 and 2 4 , consider a monopolist facing demand and with costs as illustrated below. 2 3 . First suppose the
For Questions and consider a monopolist facing demand and with costs as illustrated below.
First suppose the monopolist must charge all customers the same price the marginal revenue curve illustrated above reflects this assumption To maximize profit, the monopolist will set a price of per unit and sell
A $;
B $;
C $;
D $;
Now suppose the monopolist can engage in perfect price discrimination. When maximizing profit, the monopolist will sell units of output.
A
B
C
D None of the above answers are correct since the graph does not convey enough information to determine the profit maximizing quantity for such a firm
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