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Business · Economics
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1. (0 A monopolist with cost function e(Q)-jo* faces a consumer whose demand functions are given by (a) [51 Suppose the monopolist cannot engage in any price discrimination. (b) [5) What is the deadweight loss (relative to the competitive market out (c) [5] Now, suppose price discrimination is possible. Find the monopolists (d) [51 What information is required for the monopolist to be able to use Qi=20-P and Q-40-2P. Find the firms optimal pricing strategy. Calculate the firms Lerner index. come) associated with this pricing strategy, if any? optimal third-degree more inelastic at the optimal solution? optimal solution? strategy Which third-degree price discrimination? Give a real-life example where third- degree price discrimination is used.
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