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Question: Let's consider a monopolist with the simple cost function C = q, an industry populated by identic...

Show transcribed image text Let's consider a monopolist with the simple cost function C = q, an industry populated by identical consumers with individual inverse demand function P = 100 – q. Suppose the monopolist is able to engage in function P discrimination. What is the producer surplus per consumer? What is the consumer surplus per consumer? suppose the monopolist engages in second-degree price crimination, using the following pricing policy: the price first 3 units, and $10 for each unit. How many units will each consumer purchase? What is the producer surplus per consumer? What is the consumer surplus per consumer? This is not the best the monopolist can do. Instead of $10 for each additional unit, the monopolist should (choose one: raise/lower) this price. (A sketch might help you.)

Let's consider a monopolist with the simple cost function C = q, an industry populated by identical consumers with individual inverse demand function P = 100 – q. Suppose the monopolist is able to engage in function P discrimination. What is the producer surplus per consumer? What is the consumer surplus per consumer? suppose the monopolist engages in second-degree price crimination, using the following pricing policy: the price first 3 units, and $10 for each unit. How many units will each consumer purchase? What is the producer surplus per consumer? What is the consumer surplus per consumer? This is not the best the monopolist can do. Instead of $10 for each additional unit, the monopolist should (choose one: raise/lower) this price. (A sketch might help you.)