Answer to Question #151526 in Economics for Sahil Yadav

Question

Suppose a no cost monopolist have a demand function Q=10-p. show that how this monopolist can obtain more profit as compared to the profit maximization level of output. Relate the idea of second degree price discrimination and show graphically.

Answer 1

The company can increase price but decrease with increasing of bought units. wanting to buy goods with more advantage consumers will buy more units contrary to the demand function.