Dreher’s Designer Shirt Company, a monopolist, can engage in perfect price discrimination

Subject:EconomicsPrice:3.89 Bought12

Share With

Dreher’s Designer Shirt Company, a monopolist, can engage in perfect price discrimination. Using the following table, answer the questions below: (Please show how you arrived at your answers.)

 

Quantity Demanded                           Price

1. $170
2. $160
3. $150
4. $140
5. $130
6. $120
7. $110
8. $100
9. $95

1. What is the marginal revenue for the firm from selling the 5^th shirt?
2. If marginal cost is $100, how many shirts will be sold by the firm?
3. Find the total revenue for the firm when 3 shirts are sold.
4. What would be the total revenue for a single price monopoly when 3 shirts are sold?
5. How much is the revenue difference between the two firms when 3 shirts are sold?