What are the strengths and weaknesses

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Reference no: EM137798

Q1. A monopoly with constant marginal costs of $50 can sell to three groups of potential consumers, with demands Q1 = 800 - 0.2p, Q2 = 400 - p, and Q3 = 700 - 0.4p respectively. Find the optimal price- quantity combination in each market

(i) if the firm is able to price-discriminate;

(ii) if it is not able to price-discriminate.

Q2. What are the strengths and weaknesses of the measure of welfare used by many economists: consumer welfare plus producer surplus?

Reference no: EM137798

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