Business
Business, 16.06.2021 14:00, GreenHerbz206

Ou 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 - 3, while group 2’s is - 5. Your marginal cost of producing the product is $40.
a. Determine your optimal markups and prices under third-degree price
discrimination.
b. Identify the conditions under which third-degree price discrimination
enhances profits

answer
Answers: 3

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