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Suppose that a monopolist faces a demand from seniors of P=14-0.25Q and from others of P=A-Q, where A=26.0. Suppose that the monopolist decides to price
Suppose that a monopolist faces a demand from seniors of P=14-0.25Q and from others of P=A-Q, where A=26.0. Suppose that the monopolist decides to price discriminate and set different prices in the two different markets. Marginal cost are constant, i.e., MC=10. How much larger is the price in the other market than in the senior market? No units, no rounding.
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