(Figure: Third Degree Monopolist) The monopolist in the graph has market power; he can separate the market into different consumer groups based on their elasticities of demand, and he can prevent arbitrage. The monopolist has a marginal cost of $10. If he practices third-degree price discrimination, total producer surplus will be

A) $56,250.
B) $100,000.
C) $156,250.
D) $43,750.

Question

(Figure: Third Degree Monopolist) The monopolist in the graph has market power; he can separate the market into different consumer groups based on their elasticities of demand, and he can prevent arbitrage. The monopolist has a marginal cost of $10. If he practices third-degree price discrimination, total producer surplus will be
(Figure: Third Degree Monopolist) The monopolist in the graph has market power; he can separate the market into different consumer groups based on their elasticities of demand, and he can prevent arbitrage. The monopolist has a marginal cost of $10. If he practices third-degree price discrimination, total producer surplus will be A) $56,250. B) $100,000. C) $156,250. D) $43,750.

A) $56,250. 
B) $100,000. 
C) $156,250. 
D) $43,750.

Quizplus · Accepted Answer

The Answer of (Figure: Third Degree Monopolist) The monopolist in the graph has market power; he can separate the market into different consumer groups based on their elasticities of demand, and he can prevent arbitrage. The monopolist has a marginal cost of $10. If he practices third-degree price discrimination, total producer surplus will be

A) $56,250. 
B) $100,000. 
C) $156,250. 
D) $43,750.

(Figure: Third Degree Monopolist) the Monopolist in the Graph Has