Calculate the equilibrium output if he discriminates perfect

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A monopolist is able to discriminate perfectly among his consumers - by charging a different price to each one. The market demand curve facing him is given by P = 72-Q. His marginal cost is given by MC = 24 and marginal revenue is MR = 72-2Q.

(a) In a diagram, illustrate the profit-maximizing equilibrium, where discrimination is not practiced.

(b) Calculate the equilibrium output if he discriminates perfectly.

(c) If he has no fixed cost beyond the marginal production cost of $24 per unit, calculate his profit in each pricing scenario.

Reference no: EM131072402

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