What is the deadweight loss for each market segment

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A monopolist is considering third degree price discrimination. It estimates that the inverse demand curves of its two potential market segments are:

Segment A: P ( Q A ) = 120 - 10 Q A

Segment B: P ( Q B ) = 60 - 5 Q B

The firm operates a single plant. Assuming fixed costs are negligible, its costs are such that:

A T C = M C = 10

If the monopolist is able to price discriminate, what will be the equilibrium price and quantity for each market segment?

What is the deadweight loss for each market segment?

Reference no: EM132526612

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