Shell Designs, Inc. faces the following monthly demand for its designer coffee mugs, which are hand-made using a special clay from imported from Costa Rica:
The average cost of producing each hand-made coffee mug is $8, and costs are constant.
-Under perfect price discrimination, Shell Designs earns $_________ total revenue each month and incurs $_________ total costs. Profit under first-degree price discrimination is $__________ per month, which exceeds the uniform profit by $________ per month.

Question

Shell Designs, Inc. faces the following monthly demand for its designer coffee mugs, which are hand-made using a special clay from imported from Costa Rica:
  The average cost of producing each hand-made coffee mug is $8, and costs are constant.
-Under perfect price discrimination, Shell Designs earns $_________ total revenue each month and incurs $_________ total costs. Profit under first-degree price discrimination is $__________ per month, which exceeds the uniform profit by $________ per month.

Quizplus · Accepted Answer

The Answer of Shell Designs, Inc. faces the following monthly demand for its designer coffee mugs, which are hand-made using a special clay from imported from Costa Rica:
  The average cost of producing each hand-made coffee mug is $8, and costs are constant.
-Under perfect price discrimination, Shell Designs earns $_________ total revenue each month and incurs $_________ total costs. Profit under first-degree price discrimination is $__________ per month, which exceeds the uniform profit by $________ per month.