Wednesday

October 1, 2014

October 1, 2014

Posted by **Lorie** on Sunday, December 6, 2009 at 1:35am.

Buyer A Maximum price $50,000

Buyer B Maximum price $40,000

Buyer C Maximum price $30,000

Buyer D Maximum price $20,000

Buyer E Maximum price $10,000

The cost of producing the cars includes $50,000 of fixed costs and a constant marginal cost of $10,000. With a Quantity between 0 and 6 cars per period.

a) graph the demand, marginal revenue, and marginal cost curves.

b) What is the profit-maximizing rate of output and price for the monopolist? How much profit does the monopolist make?

Output____________

Price_____________

Profit____________

c) If the monopolist can price-discriminate, how many cars will he sell?

d) How much profit will he make?

- college/microeconomics -
**economyst**, Monday, December 7, 2009 at 1:21pmFirst, derive a marginal revenue curve (like you did in your previous post.) So,

P=50000, Q=1, TR=50000, MR=50000

P=40000, Q=2, TR=80000, MR=30000

P=30000, Q=3, TR=90000, MR=10000

and so on.

b) he makes 3 cars, charges 30,000 each, and makes 10,000 profit.

c) He makes 5 cars, charges the maximum each buyer will pay TR=150,000 ...

**Answer this Question**

**Related Questions**

Microeconomics - The following table indicates the prices various buyers are ...

Econ - In which of the following circumstances would a buyer be indifferent ...

math - a soft ware buyer looking for a product to retail for $230.00 he wants ...

Stuck on 3d - Math - Suppose you’re thinking about buying a used car, but you’ve...

real estate finance - A property sells for $125,000 and the homeowner has a ...

business math - a software buyer is looking for a product to retail for $230. he...

math (percent) - A software buyer is looking for a product to retail for $230. ...

Math - A buyer is paying a reduced $500 in closing costs on a home with a sale ...

math - A buyer is paying a reduced $500 in closing costs on a home with a sale ...

accounting - Exercise 5-3 Analyzing and recording merchandise transactions-both ...