1. A monopolist serves two individuals, A and B. Individual demands are defined by p = 7 -q and p = 4 - 2q, respectively. The monopolist's total cost of production is defined by TC(q + 9) = 2(a + 9). Suppose B that price discrimination is not possible. a. ) Sketch market demand and the monopolist's marginal revenue of output. b. ( Find (p, q) and indicate the solution on the graph. State whether anyone is excluded.
1. A monopolist serves two individuals, A and B. Individual demands are defined by p = 7 -q and p = 4 - 2q, respectively. The monopolist's total cost of production is defined by TC(q + 9) = 2(a + 9). Suppose B that price discrimination is not possible. a. ) Sketch market demand and the monopolist's marginal revenue of output. b. ( Find (p, q) and indicate the solution on the graph. State whether anyone is excluded.
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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Transcribed Image Text:1. A monopolist serves two individuals, A and B. Individual demands are
defined by p = 7-9 and PB = 42q, respectively. The monopolist's
total cost of production is defined by TC(q + 9) = 2(a +98). Suppose
that price discrimination is not possible.
a. C
) Sketch market demand and the monopolist's marginal
revenue of output.
b. (
Find (p, q) and indicate the solution on the graph. State
whether anyone is excluded.
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