[Q: 12-2869810) Nonlinear Price Discrimination. Consider a monopolist that faces an inverse demand curve given by P(Q) =

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Q 12 2869810 Nonlinear Price Discrimination Consider A Monopolist That Faces An Inverse Demand Curve Given By P Q 1 (84.77 KiB) Viewed 74 times

[Q: 12-2869810) Nonlinear Price Discrimination. Consider a monopolist that faces an inverse demand curve given by P(Q) = 280 - 3Q and has a cost function given by C(q) = 202 +5Q. Uniform Pricing Model Suppose the monopolist is unable to price discriminate and must charge the same price to all consumers. Part 1 (4 points): Calculate the monopolist's profit-maximizing quantity. Profit-maximizing quantity: 27.50. (Enter your answer rounded to two decimal places and use the rounded value in Part 2.) Part 2 (4 points): Calculate the producer surplus of this market under the uniform pricing model. Producer surplus: $ 3781.25. (Enter your answer rounded to two decimal places.) Nonuniform Pricing Model Now suppose the monopolist can engage in second degree price discrimination by using two blocks in a declining-block pricing scheme. It charges a high price, P1, on the first Q, units (the first block) and a lower price, P2, on the next Q2 -Q, units (the second block). Part 3 (4 points): Calculate the profit-maximizing values for Qy. Quantity sold in the first block (Q1): 16.18. (Enter your answer rounded to two decimal places and use the rounded value in Parts 4 and 5.) Part 4 (4 points): Calculate the profit-maximizing values for Q2. Total quantity sold (Q2): 32.36. (Enter your answer rounded to two decimal places and use the rounded value in Part 5.) Question 5 (4 points): Calculate the producer surplus of this market under the non-uniform pricing model. Producer surplus: $ 4448.53. (Enter your answer rounded to two decimal places.)