A monopolist finds that the demand for its product varies by height: q = 3h — 2p, where h is the buyer's height. No resale is possible, so that the monopolist can price discriminate. Supposing the monopolist maximises profits, Taller people will pay higher prices and purchase a larger quantity than shorter people Taller people will pay lower prices and purchase a smaller quantity than shorter people Taller people will pay lower prices and purchase a larger quantity than shorter people Everyone will pay the same price, but older people will purchase more Taller people will pay higher prices and purchase a smaller quantity than shorter people
A monopolist finds that the demand for its product varies by height: q = 3h — 2p, where h is the buyer's height. No resale is possible, so that the monopolist can price discriminate. Supposing the monopolist maximises profits, Taller people will pay higher prices and purchase a larger quantity than shorter people Taller people will pay lower prices and purchase a smaller quantity than shorter people Taller people will pay lower prices and purchase a larger quantity than shorter people Everyone will pay the same price, but older people will purchase more Taller people will pay higher prices and purchase a smaller quantity than shorter people
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 13SQ
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![A monopolist finds that the demand for its product varies by height: q = 3h - 2p,
where h is the buyer's height. No resale is possible, so that the monopolist can
price discriminate. Supposing the monopolist maximises profits,
Taller people will pay higher prices and purchase a larger quantity than shorter people
Taller people will pay lower prices and purchase a smaller quantity than shorter people
Taller people will pay lower prices and purchase a larger quantity than shorter people
Everyone will pay the same price, but older people will purchase more
Taller people will pay higher prices and purchase a smaller quantity than shorter people](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75cc0061-2122-4c08-9d22-4c32a98bc2e1%2Fae0ea1bb-2db7-4d3e-923f-b746acf46e49%2Frtri8hqo_processed.png&w=3840&q=75)
Transcribed Image Text:A monopolist finds that the demand for its product varies by height: q = 3h - 2p,
where h is the buyer's height. No resale is possible, so that the monopolist can
price discriminate. Supposing the monopolist maximises profits,
Taller people will pay higher prices and purchase a larger quantity than shorter people
Taller people will pay lower prices and purchase a smaller quantity than shorter people
Taller people will pay lower prices and purchase a larger quantity than shorter people
Everyone will pay the same price, but older people will purchase more
Taller people will pay higher prices and purchase a smaller quantity than shorter people
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