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  3. 3 assume that a pure monopolist is able to engage...

Question: 3 assume that a pure monopolist is able to engage...

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3 Assume that a pure monopolist is able to engage in perfect price discrimination and sell each unit of the product at a price equal to the maximum price the buyer of that unit of the product would be willing to pay Complete the table below by computing total revenue and marginal revenue for the price discriminating monopolist Total Marginal Total Marginal Quantity Price revenue revenue cost 1 32 2 30 3 28 4 26 5 24 6 22 7 20 8 18 9 16 10 14 36 $ 100 160 (a) What is the marginal revenue that the disciminating monopolist obtains from the sale of each additional unit? (b) How many units would be produced and what would be the total revenue for the perfectly discriminating monopolist? What would economic profits be? (c) Compare the economic effects of price discrimination to no price discrimination for the pure monopolist in terms of profits and the level of output

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