consumers surplus, and given the following demand curve
of a consumer for a monopolist product Q=14-2p
a) Find the total revenue of the monopolist when it sells 6
units of the commodity without practicing any form of
discrimination. What is the value of the consumer’s
surplus?
b) What would be the total revenue of the monopolist if it
practiced first-degree price discrimination? How much
would the consumers’ surplus be in this case?
c) What if the monopolist charged P=$5.50 for the first 3
units of the commodity and P=$4 for the next 3 units –
what type of price discrimination is this?
Froeb et al.’s Chapter 14:
a) Individual problems: 14–1 and 14–4.
Individual Problem 14-1: Why might Mattel set a much
lower contribution margin on its Barbie dolls than on the
accessories for the dolls?
Individual Problem 14-4: A manufacturer of microwaves
has discovered that male shoppers have little value for
microwaves and attribute almost no extra value to an
auto-defrost feature. Female shoppers generally value
microwaves more than men and attribute value to the
auto-defroster feature. There is little additional cost to
incorporating auto defrost feature. Since men and women
cannot be charged different prices for the same product
the manufacturer is considering introducing two different