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PRICE DISCRIMINATION! practice problem help Leticia owns a firm that sells to two groups of customers: senior citizens and non-seniors. There are 500 seniors and

PRICE DISCRIMINATION! practice problem help

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Leticia owns a firm that sells to two groups of customers: senior citizens and non-seniors. There are 500 seniors and 100 non- seniors that are potential customers for Leticia. Each senior's willingness to pay for Leticia's product is $10. Each non-senior's willingness to pay is $25. Each will buy at most one unit of Leticia's product. Leticia's marginal cost is constant at $5 and there are no fixed costs. If the profit maximizing Leticia could only charge one price, she would charge_ . If Leticia can successfully price discriminate between seniors and non-seniors by requiring seniors to show their ID, how much more profit will Leticia earn relative to the profit maximizing single price outcome? O $10; $1,500 O $10; $2,000 O $10; $4,500 O $25; $2,500 O $25; $4,500

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