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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
3) Consider the following data on costs and revenues for a pure monopolist. a What level of output would a monopolist that is unable to practice price
discrimination choose? What is the profit at this level of output? b. What level of output wwld a monopolist that can practice first degree price
discrimination choose? What is the profit under first degree price discrimination? c. If a monopolist that practices first degree price discrimination sets the same output
as a perfectly competitive industry (and hence there is allocative efficiency} then
does it follow that big firms should be given more market power rather than have
their market power curtailed?
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