Quiz12_F10 - 2 = 120 - Q 2 , where Q 2 is the quantity...

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3550 Quiz 12 F10 Last Name: First Name: 1. (3) In general, what are the three conditions needed for the firm to be able to practice the 3 rd degree price discrimination? 2. (7) Suppose a monopolist sells in two distinct markets. The demand for the first market is given by P 1 = 240 - 2Q 1 where Q 1 is the quantity demanded and P 1 is the price paid by the first group. The demand for the second market is given by P
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Unformatted text preview: 2 = 120 - Q 2 , where Q 2 is the quantity demanded and P 2 is the price paid by the second group. The monopoly's marginal cost is given by MC = 4/9 Q, where Q is the total output produced by the monopoly. a. How much does the monopoly supply in each market and what price does it charge? b. What is the common equilibrium value of marginal revenue and marginal cost?...
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This note was uploaded on 03/14/2012 for the course ECON 2243 taught by Professor Henryfors during the Spring '12 term at Abant İzzet Baysal University.

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