Suppose the monopolist can price discriminate after the 4th unit. That is, the first four units...

  

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Suppose the monopolist can price discriminate after the 4th unit. That is, the first four units are sold at a price of $27. If they want to sell a 5th unit, they charge $27 from the first four units, and $26 from the 5th unit (for a total revenue of 27*4+26=134). If they want to sell 7 units, their revenue will be 27*4+26+25+24=$183, and so on. How many units does this price discriminating monopolist sells (if indifferent between two quantities, assume they sell the LARGER quantity)? Output 4 5 6 7 8 9 10 11 12 13 14 Price $27 $26 $25 $24 $23 $22 $21 $20 $19 $18 $17 Total Cost $28 $34 $42 $52 $64 $79 $96 $116 $139 $165 $195 Suppose the monopolist can price discriminate after the 4th unit. That is, the first four units are sold at a price of $27. If they want to sell a 5th unit, they charge $27 from the first four units, and $26 from the 5th unit (for a total revenue of 27*4+26=134). If they want to sell 7 units, their revenue will be 27*4+26+25+24=$183, and so on. How many units does this price discriminating monopolist sells (if indifferent between two quantities, assume they sell the LARGER quantity)? Output 4 5 6 7 8 9 10 11 12 13 14 Price $27 $26 $25 $24 $23 $22 $21 $20 $19 $18 $17 Total Cost $28 $34 $42 $52 $64 $79 $96 $116 $139 $165 $195

Answer rating: 100% (QA)

To find the number of units the monopolist will sell we need to solve the following problem Maximize ... View the full answer