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AP Microeconomics/Unit 4: Imperfect Competition
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Monopoly Pricing and Consumer Surplus
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A monopolist faces two separate markets with inverse demand curves of $$P_1 = 100 - 2Q_1$$ and $$P_2 = 80 - Q_2$$. The monopolist’s marginal cost is constant at $20. If the monopolist is prevented from price discriminating and must set a single price for both markets, what will be the total consumer surplus?

A

$225

B

$450

C

$900

D

$0

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