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Perfectly price-discriminating monopolist would produce

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A firm with market power faces the demand function q = 2,000 - 20P. The firm's total cost function is TC(q) = 20q + 0.02q2 + 2,000.

a. If the firm behaves as a single-price monopoly, what are its optimal price and output level?

b. Demonstrate that the single-price monopolist's profit-maximizing choice of price and output also maximize producer surplus.

c. Identify the output level that would maximize total surplus.

d. Identify the output level that a perfectly price-discriminating monopolist would produce.

Reference no: EM132482394

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