A market comprises two consumers groups: high- demand types and low-demand types. The high types have demand QH = 9 - Pand low types have demand QL = 8 – P. Assume a monopolist has marginal cost of MC = 3. It is not possible to separate the two types from the monopolist's perspective so the monopolist is not able to price discriminate between the two consumer types. What is the maximum profit using third degree price discrimination to the nearest integer? Select one: а. 13 b. 17 C. 19 d. 15

A market comprises two consumers groups: high- demand types and low-demand types. The high types have demand QH = 9 - Pand low types have demand QL = 8 – P. Assume a monopolist has marginal cost of MC = 3. It is not possible to separate the two types from the monopolist's perspective so the monopolist is not able to price discriminate between the two consumer types. What is the maximum profit using third degree price discrimination to the nearest integer? Select one: а. 13 b. 17 C. 19 d. 15

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 14E

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