Suppose that the demand for a monopolist's product is estimated to be Qd = 100 ? 2P and its total costs are C(Q) = 10Q. Under first-degree price discrimination, the optimal price(s), number of total units exchanged, profit, and consumer surplus are:
A. P = $30; Q = 40, ? = $800; CS = $400.
B. 10 ? P ? 50; Q = 80, ? = $1,600; CS = $0.
C. P = $30; Q = 40, ? = $600; CS = $0.
D. 10 ? P ? 100; Q = 80; ? = $1,600; CS = $1,600.
Answer: B
Economics
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