You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P = 250- 4Q, and your cost function is TC = 10Q. A. MC is fixed and is equal to $10 (MC=AC=S). MR=250-8Q.

(P=price, Q=quantity of output, TC=total cost, MC=marginal cost, MR=marginal revenue, S=supply)

What price the company should choose to get maximum profit if the company will use ordinary pricing strategy?
Now suppose the company is thinking about using price discrimination for lower income group of customers. If the company will offer discount of $30 in price to the lower income groups how much additional profit will the company earn? Illustrate graphically.
Explain the conditions needed to apply the price discrimination strategy? Nu

(1) 240-8Q=0240−8Q=0  (2) 225 (3) it is very necessary that the direct elasticity of demand for a product at a price from several buyers be different significantly;  so that customers are easily known, that further goods resale by buyers is not possible

Step-by-step explanation:

Solution

Given that:

(1) TR=∫MR=250Q−4Q  

Pr=TR-TC=250Q-4Q² - 10Q=240Q−4Q²  

Thus,

Pr   =240−8Q

240-8Q=0240−8Q=0

(2) Q=30

Now,

p=250-4 * 30=130

p=100

so.

100=250−4Q

Q=37.5

Pr=240×37.5−4×37.5²

=3375

Hence,

ΔPr=3600−3375=225

(3) For the execution of price discrimination by a monopolist, it is very important that the direct elasticity of demand for a product at a price from different buyers be remarkably different; so that  customers are easily known, that further goods resale by buyers is not done.

d

step-by-step explanation:

the answer would be d

straight away you can eliminate a and c because not all books contain a scientific skill because some may be fiction. c is also wrong because it saids that the only way children can learn is through books which is incorrect.

b is also wrong because reading can be a scientific skill but not always, therefore it is wrong which leaves you with d, the correct answer since it said that it can children learn.

hope this ! : 3