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meghan.binge meghan.binge
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A year ago
Analyzing Price Discrimination

The graph shows the demand curve (D), marginal revenue curve (MR) and marginal cost curve (MC) for a monopolist. In the short run and long run, marginal cost equals average total cost (ATC).



Assume that the area of A=15, B=10, C=31, D=14, and E=58. Suppose you buy all the firms in the industry and combine them to form a single-firm monopoly that is protected from entry by patent. What is the consumer surplus? What is the deadweight loss?
Suppose the monopoly can practice perfect price discrimination. What is the consumer surplus?

▸ $25, $58, $0

▸ $25, $103, $128

▸ $128, $103, $128

▸ $128, $58, $0
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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angelofavariceangelofavarice
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A year ago
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meghan.binge Author
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A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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Yesterday
Thanks
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2 hours ago
This helped my grade so much Perfect
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