Marvel Cleaning Service, Inc. is a firm that specializes in cleaning business offices, and Marvel enjoys a monopoly position because it is the only firm allowed to provide cleaning service at the TechCenter industrial office park - the monopoly is believed to enhance security. There are 25 equal-sized offices in TechCenter, each one leased to a different company. TechCenter is closed 45 days a year (Sundays plus official federal holidays), which limits the demand for Marvel's cleaning services to a maximum of 320 cleanings per year for each one of the 25 companies leasing offices.
Marvel believes it faces an identical demand by each one of the 25 businesses in TechCenter. This demand curve is shown below. Marvel's costs are constant and equal to $30 per office cleaning.
The owner of Marvel Cleaning Service is considering three types of pricing: (1) uniform pricing, (2) first-degree price discrimination, and (3) block pricing with three pricing blocks.
-If Marvel practices uniform pricing, it will charge $________ for an office cleaning and will face a quantity demanded from each of the 25 identical firms of __________ cleanings per year. At TechCenter, Marvel's total profit per year is $__________(i.e., the sum of the profits from the 25 businesses in TechCenter). Each one of the businesses enjoys $____________ of consumer surplus under uniform pricing.

Question

Marvel Cleaning Service, Inc. is a firm that specializes in cleaning business offices, and Marvel enjoys a monopoly position because it is the only firm allowed to provide cleaning service at the TechCenter industrial office park - the monopoly is believed to enhance security. There are 25 equal-sized offices in TechCenter, each one leased to a different company. TechCenter is closed 45 days a year (Sundays plus official federal holidays), which limits the demand for Marvel's cleaning services to a maximum of 320 cleanings per year for each one of the 25 companies leasing offices. 
Marvel believes it faces an identical demand by each one of the 25 businesses in TechCenter. This demand curve is shown below. Marvel's costs are constant and equal to $30 per office cleaning.
  The owner of Marvel Cleaning Service is considering three types of pricing: (1) uniform pricing, (2) first-degree price discrimination, and (3) block pricing with three pricing blocks.
-If Marvel practices uniform pricing, it will charge $________ for an office cleaning and will face a quantity demanded from each of the 25 identical firms of __________ cleanings per year. At TechCenter, Marvel's total profit per year is $__________(i.e., the sum of the profits from the 25 businesses in TechCenter). Each one of the businesses enjoys $____________ of consumer surplus under uniform pricing.

Quizplus · Accepted Answer

The Answer of Marvel Cleaning Service, Inc. is a firm that specializes in cleaning business offices, and Marvel enjoys a monopoly position because it is the only firm allowed to provide cleaning service at the TechCenter industrial office park - the monopoly is believed to enhance security. There are 25 equal-sized offices in TechCenter, each one leased to a different company. TechCenter is closed 45 days a year (Sundays plus official federal holidays), which limits the demand for Marvel's cleaning services to a maximum of 320 cleanings per year for each one of the 25 companies leasing offices. 
Marvel believes it faces an identical demand by each one of the 25 businesses in TechCenter. This demand curve is shown below. Marvel's costs are constant and equal to $30 per office cleaning.
  The owner of Marvel Cleaning Service is considering three types of pricing: (1) uniform pricing, (2) first-degree price discrimination, and (3) block pricing with three pricing blocks.
-If Marvel practices uniform pricing, it will charge $________ for an office cleaning and will face a quantity demanded from each of the 25 identical firms of __________ cleanings per year. At TechCenter, Marvel's total profit per year is $__________(i.e., the sum of the profits from the 25 businesses in TechCenter). Each one of the businesses enjoys $____________ of consumer surplus under uniform pricing.