What would be the equilibrium price and quantity explain

Reference no: EM13874395

Suppose the demand curves in two different markets are given by: Q_1=24 - P_1 and Q_2=24 - 2P_2

and that a monopoly can serve both of these markets at a constant marginal cost of $6.

a) If the monopoly can't separate both markets, then what would be the equilibrium price and quantity? Explain.
b) Does the firm make a profit? If yes, how much is it? Explain.
c) If the monopoly can separate both markets, then what type of price discrimination would the firm use? Explain.
d) If the monopoly can separate both markets, then what would be the equilibrium price and quantity? Explain.
e) Does the firm make a profit with price discrimination? If yes, how much is it? Explain.
f) Should the firm practice price discrimination? Why/Why not?

Reference no: EM13874395

Questions Cloud

The long-run average total cost of producing 100 units : A firm's production function is given by Q = KL, where MPL = K and MPK = L. The wage rate (W) = $50 and the rental rate per unit of capital (R) is $12.50. In the short run, capital (K) is fixed at 10 units. The short-run average total cost of produci..

Development of political structures in the united states : How did historical regional differences affect the development of political structures in the United States? .What examples do you see in current times of how these events affected the U.S. development of culture and society? Paragraph

What would be the optimal prices at the given capacity : What is the socially optimal capacity? What would be the optimal prices at this capacity? Why does Pd > Pn? If PPPC had access to this technology, but still had the capacity of part (a), what would be the socially optimal prices?

Free entry in a perfectly competitive industry results : Free entry in a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent.

What would be the equilibrium price and quantity explain : a) If the monopoly can't separate both markets, then what would be the equilibrium price and quantity? Explain.b) Does the firm make a profit? If yes, how much is it? Explain.c) If the monopoly can separate both markets, then what type of price discr..

The income statement information : The income statement information for 2010 and 2011 of the Connor Company (a sole proprietorship) is as follows:

According to the keynesian model : Answer the question in short-answer format. Write your response in complete sentences. Your answers to each question should include 2-3 paragraphs (200-250 words)! No more than 250-300 words!Be sure to carefully read the question to ensure that each ..

Find the optimal capacity peak price and off-peak price : Suppose that A = 50 and β = 4. Find the optimal capacity, peak price, and off-peak price. (b) Suppose that A = 90 and β = 8. Find the optimal capacity, peak price, and off-peak price.

Economic interpretation of the shadow price associated : Supplies at least 50 units of calcium, 90 units of protein, and 66 calories at minimum cost.a. Formulate, graph, and solve this decision problem. What is the minimum cost of meeting the nutrient requirements?(9) b. Calculate and provide an economic i..

User Account

All Pages