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Using a spreadsheet like the following, entering formulas for the total revenue and consumer's surplus, and given the following demand curve of a consumer for a monopolist's product Q = 14-2P
(a) find the total revenue of the monopolist when it sells 6 units of the commodity without practicing any form of price discrimination. What is the value of the consumers' surplus?
(b) What would be the total revenue of the monopolist if it practiced first degree price discrimination? How much would the consumers surplus be in this case?
(c) What if the monopolist charged P = $5.50 for the first 3 units of the commodity and P = $4 for the next 3 units. What type of price discrimination is this?
TR Consumer's Surplus
Q 6.0 24
P $4
1st Degree Consumer's Surplus
2 Prices TR Consumer's Surplus
P1 $5.50
P2 $4.00
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