A monopolist faces a market demand curve of q=100-p. The monopolist’s cost function is given by...

A monopolist faces a market demand curve of q=100-p. The monopolist’s cost function is given by (q) = 3000 + 20q.
a) If the monopolist can perfectly price discriminate, how many units will be sold?
b) If the monopolist can perfectly price discriminate, how much consumer surplus will there be?
c) If the monopolist cannot price discriminate, how much consumer surplus will there be? (For this question, think long run.)

Expert Solution

Rahul Sunny answered 2 years ago

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