I only need help with plotting the graphs for question 1b and question 2. Please be as specific as possible in plotting the graphs and explaining. Thanks in advance. The questions were already submitted (posting 3000)
I only need help with the graphs. See attatchments for TA's earlier response. Thanks in advance
1. A monopolist has the possibility of price discrimination between domestic and foriegn markets for a product. The demands are Qd = 21 -0.1P in the domestic market and Qf = 50 - 0.4P in the foriegn market. The monopolist's short-run total cost function is STC = 2000 + 10Q, where Q = Qd + Qf.
a. Calculate the profit-maximizing, price-quantity combnation for the monopolist with price discrimination in each market and without price discrimination.
b. Graph you answers. (Three graphs necessary) This is what I need to be specific.
c. Compare the profit differential between price discrimination and no price discrimination. Does it make economic sense for this firm to engage in price discrimination? Why or why not?
2. Larry, Curly and Moe run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Curly wants the saloon to bring in as much revenue as possible. Moe wants to make the largest possible profits. Using a single graph of the saloon's demand and marginal revenue curves and its marginal cost and average cost curves, where MC = AC, show the price-quantity combinations favored by each of the three partners.
3. The onopolist's total revenue function is TR = 1400Q - 7Q^2. His short-run total cost function is STC = 1500 + 140Q.
a. Calculate the profit-maximizing, price-quantity combination.
b. Calculate the revenue-maximizing, price quantity combination.© BrainMass Inc. brainmass.com March 4, 2021, 5:37 pm ad1c9bdddf