Economics Homework

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h6_ps_online_sp14q.xlsx

Sheet1

Price Searcher
Total Marginal Quantity Price Total Marg Total P-Discr P-Discr
Cost Cost Revenue Revenue Profit TR MR
$500 0 $350 - - -
555 $55 1 340 $340 $340
608 53 2 330 670 330
658 50 3 320 990 320
710 52 4 310
766 56 5 300
829 63 6 290
902 73 7 280
988 86 8 270
1089 101 9 260
1208 119 10 250
1349 141 11 240
1514 165 12 230
1705 191 13 220
1926 221 14 210
2182 256 15 200
2477 295 16 190
a. Complete the empty columns labeled Marg Cost, TR, Marg. Rev, Total Profit,
Price-Discrimination Total Revenue and Marginal Rev.
b. If the firm must charge one price to all customers, what will be the price
and quantity this firm will choose, what will be total profit?
c. If the firm is able to price discriminate perfectly, what quantity will it choose
to sell and what will be its total profit?