How many units will the consumer buy in jail

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Reference no: EM13192189

Suppose the individual demand for a product is given by QD = 1000 - 5p. Marginal revenues is MR = 200 - 0.4Q, and marginal cost is constant at $20 there are no fixed cost.
A. The firm is considering a quantity discount. The first 400 units can be purchased at a price of $120and further units can be purchased at a price $80. How many units will the consumer buy in jail?
B. Show that this second-degree price - discrimination scheme is more profitable than a single monopoly price.

Reference no: EM13192189

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