x A monopoly faces the demand curve P = 110 — Q and has the cost...

x A monopoly faces the demand curve P = 110 — Q and has the cost function C (Q) = 10Q + Q2. Compare the total Q, profits, producer surplus, consumer surplus and DWL compared to perfect competition for: a. single-price monopoly, b. the perfectly price-discriminating monopoly, c. and a quantity-discriminating monopoly (block pricing) by considering one possible price schedule: sell its first 25 units (Q1) at P1 = 85 and sell an additional (Q2 — Q1) = —235 units at P2= = 230.

Expert Solution

The third question (part c) isn't very clear but I tried my best at continuing on course with my own interpretation.

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Rahul Sunny answered 2 years ago

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