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July 30, 2014

Homework Help: Economics

Posted by ashley on Wednesday, November 14, 2007 at 11:29am.

Suppose there are three types of chip consumers in the world with three different inverse demand functions given by Pa=30-1/2P, Pb=40-1/2P, and Pc=50-1/2P. The marginal cost of the monopoly that produces chips is a constant $20. What size packages should the perfectly price discriminating monopolist make? What price should the price discriminating monopolist charge for each package?
How much profit will the price discriminating monopolist make?

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