A monopolist has variable costs of VC = q2 and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist engages in first-degree price discrimination, the resulting deadweight loss is?

First-degree price discrimination, also known as perfect price discrimination, is when a monopolist charges each consumer their maximum willingness to pay. In this case, the monopolist captures all consumer surplus and there is no deadweight loss.

Here's why:

1. The monopolist's marginal cost (MC) is the derivative of the variable cost (VC), which is 2q.

2. The demand curve is P = 24 - q.

3. In first-degree price discrimination, the monopolist sets MC equal to the price that each individual consumer is willing to pay.

4. Therefore, the monopolist will set 2q = 24 - q. Solving for q gives q = 8.

5. Substituting q = 8 into the demand curve P = 24 - q gives P = 16.

6. Therefore, the monopolist will charge each consumer a price of 16 and sell a quantity of 8.

7. Since the monopolist is capturing all consumer surplus, there is no deadweight loss in this scenario.

So, the resulting deadweight loss is zero.

First-degree price discrimination, also known as perfect price discrimination, is when a monopolist charges each consumer their maximum willingness to pay. In this case, the monopolist captures all consumer surplus and there is no deadweight loss.

Here's why:

1. The monopolist's marginal cost (MC) is the derivative of the variable cost (VC) with respect to quantity (q). In this case, MC = 2q.

2. The demand curve is P = 24 - q.

3. In first-degree price discrimination, the monopolist sets MC equal to the price that each individual consumer is willing to pay.

4. Therefore, the monopolist will continue to produce and sell units as long as the price that consumers are willing to pay is greater than the marginal cost of production.

5. This means that all units of output for which consumers' willingness to pay exceeds the cost of production are produced and sold, just as in a perfectly competitive market.

6. Therefore, there is no deadweight loss in this scenario.

In conclusion, if a monopolist engages in first-degree price discrimination, the resulting deadweight loss is zero.