Re: monopoly doubt

Posted by Anjali on Apr 09, 2014; 3:17pm
URL: http://discussion-forum.276.s1.nabble.com/monopoly-doubt-tp7586454p7586460.html

@tsuki , the answer you have deduced , is of the case when the monopolist is price discriminating . In that case , total surplus is maximised ( each person is charged his max willingness to pay ) . But in this case , we are not told whether the monopolist is price discriminating or not. Because if he is not , then the price ceiling would be 90 , else he will incur losses .
People please help !