Question Details

How large is each individual consumer surplus? How large is total consumer surplus 


1. Use the demand schedule for diamonds given in Problem 6. De Beers is a monopolist,
but it can now price-discriminate perfectly among all five of its potential customers.
De Beers- marginal cost is constant at $100. There is no fixed cost.
a. If De Beers can price-discriminate perfectly, to which customers will it sell diamonds
and at what prices?
b. How large is each individual consumer surplus? How large is total consumer surplus ?
Calculate producer surplus by summing the producer surplus generated by
each sale.



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