Chapter 19: Problem 723
Suppose a monopolist's demand schedule is as follows: $$ \begin{array}{|l|l|} \hline \text { Quantity } & \text { Price } \\ \hline 1 & 109 \\ \hline 2 & 105 \\ \hline 3 & 100 \\ \hline 4 & 96 \\ \hline 5 & 91 \\ \hline \end{array} $$ If Total costs at the optimal output of 5 units are \(\$ 405\), a) How much profit will this monopolist earn without price discrimination? b) How much profit can he potentially earn with price discrimination?
Short Answer
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Key Concepts
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