Internet service in the local market is supplied by Laura's Internet Service. The demand is
Q_D = 6,500 - 100P $\iff$ P = 65 - 0.01Q. Laura's marginal cost function is
MC(Q) = 6.67 + 0.0067Q
If Laura practices first-degree price discrimination, what are consumer surplus and Laura's producer surplus in this market? Does Laura's market power and first-degree price discrimination result in reduced societal welfare?

Question

Internet service in the local market is supplied by Laura's Internet Service. The demand is
Q_D = 6,500 - 100P

\iff

P = 65 - 0.01Q. Laura's marginal cost function is
MC(Q) = 6.67 + 0.0067Q
If Laura practices first-degree price discrimination, what are consumer surplus and Laura's producer surplus in this market? Does Laura's market power and first-degree price discrimination result in reduced societal welfare?

Quizplus · Accepted Answer

The Answer of Internet service in the local market is supplied by Laura's Internet Service. The demand is Q_D = 6,500 - 100P$\iff$ P = 65 - 0.01Q. Laura's marginal cost function is MC(Q) = 6.67 + 0.0067Q If Laura practices first-degree price discrimination, what are consumer surplus and Laura's producer surplus in this market? Does Laura's market power and first-degree price discrimination result in reduced societal welfare?

Internet Service in the Local Market Is Supplied by Laura's ⟺ \iff⟺

Internet Service in the Local Market Is Supplied by Laura's $\iff$