Order Your Paper From the most reliable Essay writing Service. 

.

 



Question: Assume that there is a firm facing an inverse demand function of the form P = 10 - 2Q, with margi...

Show transcribed image text Assume that there is a firm facing an inverse demand function of the form P = 10 – 2Q, with marginal cost being fixed at MC = 1. This firm wants to engage in quantity-dependent pricing (second degree price discrimination) by selling the first 2 units at $6 per unit and the rest at $2 per unit. a) How many units docs the firm sell in total? i) Q = _____ b) How many units does the firm sell at $2 per unit? i) Q = _____ c) What is the producer surplus from the first 2 units? i) PS = _____ d) What is the total producer surplus? i) PS = _____

Assume that there is a firm facing an inverse demand function of the form P = 10 – 2Q, with marginal cost being fixed at MC = 1. This firm wants to engage in quantity-dependent pricing (second degree price discrimination) by selling the first 2 units at $6 per unit and the rest at $2 per unit. a) How many units docs the firm sell in total? i) Q = _____ b) How many units does the firm sell at $2 per unit? i) Q = _____ c) What is the producer surplus from the first 2 units? i) PS = _____ d) What is the total producer surplus? i) PS = _____