Suppose there are three types of chip consumers in the world with three different inverse demand functions given by Pa=30-1/2P, Pb=40-1/2P, and Pc=50-1/2P. The marginal cost of the monopoly that produces chips is a constant $20. What size packages should the perfectly price discriminating monopolist make? What price should the price discriminating monopolist charge for each package?

How much profit will the price discriminating monopolist make?

1 answer

see my post to jennifer (just below this post) for a good hint on how to solve this problem.

Repost if you have questions.