A monopolist is providing a transportation service to people with demand curve of Q=40-4P. The marginal revenue is Q=20-2P.
a. What is the monopoly price? What is its revenue?
b. What is consumer surplus? (calculate and also show graphically)
c. What is Deadweight loss? (calculate and also show graphically)
d. If the monopolist discriminate the price between work trips and non-work trips with the following demand cures, what would be the monopoly prices? What would be its total revenue?
Work trips: Demand: Q=10-(1/2)P Marginal revenue: Q=5-(1/4)P Non-work trips: Demand: 100-(100/3) P, Marginal revenue: Q= 50-(100/6)P