Suppose That the Demand for a Monopolist's Product Is Estimated

question 81

Multiple Choice

Suppose that the demand for a monopolist's product is estimated to be Q^d = 100 - 2P and its total costs are C(Q) = 10Q. Under first-degree price discrimination, the optimal price(s) , number of total units exchanged, profit, and consumer surplus are:

• A) P = $30; Q = 40, Π = $800; CS = $400.
• B) 10 ≤ P ≤ 100; Q = 80; Π = $1,600; CS = $1,600.
• C) 10 ≤ P ≤ 50; Q = 80, Π = $1,600; CS = $0.
• D) P = $30; Q = 40, Π = $600; CS = $0.

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