Question
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -2, while group 2's is -5. Your marginal cost of producing the product is $10.
a. Determine your optimal markups and prices under third-degree price discrimination.
Instructions:Enter your responses rounded to two decimal places.
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Macroeconomics Canada in the Global Environment
Authors: Michael Parkin, Robin Bade
8th edition
321778103, 978-0321808370, 321808371, 978-0321778109
