question archive You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country
Subject:EconomicsPrice: Bought3
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −2, while group 2’s is −4. Your marginal cost of producing the product is $40.
a. Determine your optimal markups and prices under third-degree price discrimination.
Instructions: Enter your responses rounded to two decimal places.
Markup for group 1:
Price for group 1: $
Markup for group 2:
Price for group 2: $
