Optimización del Beneficio del Monopolista Discriminador de Precios de Tercer Grado

Abstract

A monopolist producer applies a third-degree price discrimination scheme to his industry, by knowing in advanc eit's product demand function in each target submarket, and by defining its total cost production function. He optimizes its extraordinary profit functon when marginal cost equals to marginal revenue in each market. From here, it can be concluded that equilibrium marginal cost of industry equals marginal revenue in each market, which in turn it allows us to find both the equilibrium quantity for each sub-market and the equilibrium price at which each product is sold.