14
QUESTIONS:
a) If Adam is a single-price monopolist, what price will he
charge and how many haircuts per hour will he sell? (Hint:
construct and compute the Total Revenue and Marginal Revenue
columns). What is his total revenue? What is the market consumer
surplus?
b) If Adam price-discriminates, what is the price each type
of customer is charged? How many haircuts does Adam sell? What is
the increase in his total revenue
c) Which customer benefits from Adam’s price discrimination?
Is the outcome efficient? What happens to consumer surplus?
d) If Adam finds a fifth customer willing to pay $10 an hour
for the haircut, should he sell to him? Why or why not?
“Looking for a Similar Assignment? Get Expert Help at an
Amazing Discount!”
"Is this question part of your assignment? We Can Help!"
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.
