Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

You are the manager of a monopoly that sells a product

[ad_1]

You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -6, while group 2’s is -2. Your marginal cost of producing the product is $80.

a. Determine your optimal markups and prices under third-degree price discrimination. 

Instruction: Round your answers to two decimal places.

Markup for group 1:
Price for group 1:

Markup for group 2:
Price for group 2:

[ad_2]

Source link