Question #9: Consider a monopolist facing two consumers with

the following demand curves for its product: p1=150-5q1 and p2=100-6q2. Assume

that the marginal cost is 10.

A) If the monopolist practices personalized pricing to each

consumer, he obtains a total profit of 250.

B) If the monopolist practices group price discrimination,

the price that he must charge to consumer 1 is p1=80 and to consumer 2 is

p2=55.

C) All answers are true.

D) If the monopolist practices two-part tariffs then

consumer 1 pays a fixed fee of 150.

Question #19: The Bloomington Theater is deciding on a new

pricing policy. They estimate that the students and the general population have

different demands, given, respectively by pS =50-1/2QS and pG=200-2QG. The

marginal cost of the performances is 10. The board is contemplating the

possibility of creating a membership scheme (two-part tariff) to the theater

for students and non-students. Which of the following is true?

A) None of the answers is true.

B) The membership scheme allows for the highest consumer

surplus.

C) The optimal membership should be 1600 for students and

9025 for non-students and the fee per performance should be 10 for all

consumers.

D) The membership scheme allows for the lowest possible

profit for the firm.

Question #27: Suppose that a firm knows that she faces two

types of consumers: H and L. The demand of H is pH=140-2QH and the demand of L is pL=60-QL. Suppose that the marginal

cost is MC=10. The firm is willing to use two-part tariffs to price

discriminate. Figure 1 represents the pricing plans of the firm. Which of the

following is the optimal menu pricing scheme?

A) X=10,Y=4225, Z=800

B) X=10,Y=1425, Z=800

C) X=10,Y=800, Z=800

D) X=20, Y=3600, Z=800