Homework answers / question archive / The following table indicates the prices various buyers are willing to pay for a Mini Cooper car:   Buyer              Maximum Price                     Buyer              Maximum Price Buyer A  $50,000    Buyer D  $20,000 Buyer B    40,000    Buyer E    10,000 Buyer C    30,000    Buyer F             0   The cost of producing the cars includes $40,000 of fixed costs and a constant marginal cost of $10,000

The following table indicates the prices various buyers are willing to pay for a Mini Cooper car:   Buyer              Maximum Price                     Buyer              Maximum Price Buyer A  $50,000    Buyer D  $20,000 Buyer B    40,000    Buyer E    10,000 Buyer C    30,000    Buyer F             0   The cost of producing the cars includes $40,000 of fixed costs and a constant marginal cost of $10,000

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The following table indicates the prices various buyers are willing to pay for a Mini Cooper car:

Buyer              Maximum Price                     Buyer              Maximum Price

Buyer A  $50,000    Buyer D  $20,000 Buyer B    40,000    Buyer E    10,000 Buyer C    30,000    Buyer F             0

The cost of producing the cars includes $40,000 of fixed costs and a constant marginal cost of $10,000.

1. 1. Graph below the demand, marginal revenue, and marginal cost curves.
   2. What is the profit-maximizing rate of output and price for a monopolist? How much total profit does the monopolist make?
   3. If the monopolist can price discriminate, how many cars will he sell?
   4. How much profit will he make?