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3. A seller produces output with a constant marginal cost MC =6. Suppose there is one group of consumers with the demand curve P1 =
3. A seller produces output with a constant marginal cost MC =6. Suppose there is one group of consumers with the demand curve P1 = 90 - 301, and another with the demand curve P2 = 50 - 2Q2. (a) If the seller can discriminate between the two mar- kets, what prices would she charge to each group of consumers? (b) If the seller cannot discriminate, but instead must charge a uniform price to consumers in both mar- kets, what will be her profit-maximizing price? You don't have to find an exact price, just tell me the range of prices (for example, between a price of 35 and 73) (c) Which, if any, consumer group benefits from price discrimination? (Compare consumer surplus of groups) (d) If instead P1 = 50 - 301, does either group benefit from price discrimination
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