Figure: Price Discrimination 1 Firm A Price Firm B Price $11 7 $6.00 4.50 4.00 3.00 MC $MRA$ $D_A$ 0 3,000 6,000 12,000 Quantity 4,000 0 $MR_B$ $D_B$ 2,200 4,500 6,000 3,000 3,800 If firm B perfectly price-discriminates, its profit will be ________. Oa. $13,500 Ob. $8,800 Oc. $18,000 Od. $3,800 Quantity M

          Figure: Price Discrimination 1
Firm A
Price
Firm B
Price
$11
7
$6.00
4.50
4.00
3.00
MC
$MRA$
$D_A$
0
3,000
6,000
12,000 Quantity
4,000
0
$MR_B$
$D_B$
2,200 4,500 6,000
3,000 3,800
If firm B perfectly price-discriminates, its profit will be ________.
Oa. $13,500
Ob. $8,800
Oc. $18,000
Od. $3,800
Quantity
M

Figure: Price Discrimination 1
Firm A
Price
Firm B
Price
11
76.00
4.50
4.00
3.00
MC
MRA
DA
0
3,000
6,000
12,000 Quantity
4,000
0
MRB
DB
2,200 4,500 6,000
3,000 3,800
If firm B perfectly price-discriminates, its profit will be .
Oa. 13,500
Ob.8,800
Oc. 18,000
Od.3,800
Quantity
M

Added by Sierra O.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Rashmi Sinha

08/08/2023

Step 1

- Firm B sells 4,500 units at a price of $4.88, which gives a total revenue of 4,500 * $4.88 = $21,960. Show more…

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Firm B If firm B perfectly price-discriminates, its profit will be: a. $13,500 b. $8,800 c. $18,000 d. $3,800 Figure: Price Discrimination 1 Firm A Price Firm B Price $6.00 $4.88 $3.00 MC MRN D MRA 3,000 6,000 4,000 Quantity 1,000 4,500 6,000 If firm B perfectly price-discriminates, its profit will be: a. $13,500 b. $8,800 c. $18,000 d. $3,800