Problems not understood in microeconomics?
Please let me know.
It is a problem of the collection of problems without explanation. There are two other issues I'm not sure about, so I'm posting it in a separate post. Please let me know if you have time.
2 Answer the following questions about price discrimination by monopolies. However, the production cost of a monopoly company is proportional to the production volume, and the average total cost and marginal cost are assumed to be constant and equal.
Q1 Draw a cost curve, a demand curve, a marginal income curve of the monopoly company and show the price that the monopoly company will charge when it does not discriminate.
Q2 In the figure in Question 2 (1), indicate the area of profit of the monopoly company as X, the area of consumer surplus as Y, and the area of dead load as 2.
Q3 Assuming that a monopoly company is capable of price discrimination completely, express the profit that the monopoly company gains using X, Y, and Z.
Q4 Express the profits of a monopoly company and the change in total surplus due to price discrimination using X, Y.Z.
Question 5 It is assumed that the monopoly company pays a fixed cost C to discriminate individual prices. Use X, Y, Z, C to show how a monopoly decides whether to pay this fixed cost.
Q6 When you want to maximize total surplus, use X, Y, Z. C to show how a monopoly company discriminates price discrimination.
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