NAME SECTIONa PR?NT LAST NAME.FIRSTNAME Use the following table to answer quest
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NAME SECTIONa PR?NT LAST NAME.FIRSTNAME Use the following table to answer quest $800 0 6. If a firm revenue equal ice diseriminate produces and sells 3 units, it will receive $1 800 that is able to pr s30oal to$50.1.00$1.00 c$1500 total revenue equal to: a. $300 esqua t'le to price dsctiminate produces andl ns, i will teie $1,500. d $1,800. b. $500. Use the following table to answer questions 8 through 10. $50 40 30 20 10 8. For a monopolist that is able to price discriminate, selling 4 units brings in total revenu for a monopolist that is unable to price discriminate, selling 4 units bringsin of total revenue of a. $40; $40 b. $100; $100 c.$40: $100 $100: $40 9. For a monopolist that is unable to price discriminate, the marginal revenue of the 3d unit is and the marginal revenue of the 4 unit is a. $0; $20 b. $20; $10 c$20; $0 d. $0;-$20 For a monopolist that is able to price discriminate, the marginal revenue of the 3d unit isand the marginal revenue of the 4th unit is a. $0;-$20 b.$20: $10 10. c.$20; $0 d. $30;$20 270 Chapter 12 AssignmentsExplanation / Answer
6) It is 1800 because perfect price discrimination will allow it to charge willingness to pay. Hence it will charge $700 for 1st unit, $600 for 2nd and $500 for 3rd
7) Then it will charge a single price which is $500 at 3 units. Total revenue will be 500x3 = $1500
8) As it is done in 6), total revenue is the sum of willingness to pay for 4 units which is 40 + 30 + 20 + 10 = $100. For 4 units price is $10 hence reveneu in case of single price monopolist is 4*10 = $40
9) TR is P x Q and its values are 0, 40, 60, 60, 40. Hence MR (q=3) = TR(q = 3) - TR (q = 2) = 60 - 40 = 20. MR (q=4) = TR(q = 4) - TR (q = 4) = 60 - 60 = 0. Option C
10) Since each additional unit is sold at its WTP, TR is 0, 40, 70, 90, 100. Hence MR for 3rd units = 70 - 40 = 30 and MR for q = 4 is 90 - 70 = 20. Option D
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