2. Third Degree Price Discrimination. A nightclub owner has both male and female customers. The demand for drinks by a typical female Qr = 960-3P.
2. Third Degree Price Discrimination. A nightclub owner has both male and female customers. The demand for drinks by a typical female Qr = 960-3P. The demand for drinks by a typical male is: QM=640-2P. The nightclub owner faces constant marginal cost of $8. If the club owner could separate the groups and practice third-degree price discrimination 1. What is consumer surplus in this case? 2. What is deadweight loss
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