http://speedway.its.utexas.edu/speedway-files/college/eco304k/L13Q12.gif
Question:
If the monopoly in the link above could engage in perfect price discrimination, then each buyer would pay (a)__? The lowest ticket price would be (b)___? The number of tickets sold would be (c)_____?
My thoughts on the answer:
a is $2 right? I'm so confused because everywhere it says that MR = D, there are 2 separate lines for it in the img. I don't know how to get part b/c.
# If a perfectly competitive industry becomes a monopoly(no cost change), which happens:
1. The producer benefits, but consumers and society are harmed.
2. The producer and society are harmed, but consumers benefit.
3. The producer and society benefit, but consumers are harmed.
4. The producer is harmed, but consumers and society benefit.
# Consumer surplus is largest for .
a)perfectly competitive industry
b) single-price monopoly
c) price discriminating-mon.
d.)perfectly price-discriminating monopoly
Tags: