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Using a spreadsheet like the following, entering formulas for the total revenue and consumer's surplus, and give 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?
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?
Is there anything in what we have studied, that can point us towards an equitable solution to this problem while still protecting the environment we all share? What is that solution?
Primary, assume all retailers sell the basic version of Vista also Circuit City were to raise the price at which it sells Vista.
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