Question
The price elasticity of demand for senior citizens purchasing coffee from McDonald's is 5, while non-senior citizens have a price elasticity of demand equal to
The price elasticity of demand for senior citizens purchasing coffee from McDonald's is 5, while non-senior citizens have a price elasticity of demand equal to 1.25. If it costs McDonald's $0.02 to produce a coffee, the optimal price for a cup of coffee for non-senior citizens and the resultant marginal cost under third-degree price discrimination are:
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The Wisdom Of Crowds
Authors: James Surowiecki
1st Edition
0385721706, 9780385721707
