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?

Question

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?

economyst · 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.