A monopolist is selling sneakers to students and non-students. The Marginal Cost of an extra pair of sneakers is $9. Student demand is given by Q=240-P and Non-student demand is given by Q=400-2P. Right now they act like a single-price monopolist for the entire market. If they decide to do group price-discrimination (assume they can) what will be the CHANGE in prices for students? Don't forget to include the negative sign if the price for student falls with group price-discrimination.
A monopolist is selling sneakers to students and non-students. The Marginal Cost of an extra pair of sneakers is $9. Student demand is given by Q=240-P and Non-student demand is given by Q=400-2P. Right now they act like a single-price monopolist for the entire market. If they decide to do group price-discrimination (assume they can) what will be the CHANGE in prices for students? Don't forget to include the negative sign if the price for student falls with group price-discrimination.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A monopolist is selling sneakers to students and non-students. The
Marginal Cost of an extra pair of sneakers is $9. Student demand is given
by Q=240-P and Non-student demand is given by Q=400-2P. Right now
they act like a single-price monopolist for the entire market.
If they decide to do group price-discrimination (assume they can) what
will be the CHANGE in prices for students? Don't forget to include the
negative sign if the price for student falls with group price-discrimination.
-20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e78e711-cb0c-4c9a-bd1b-0856b1dbee82%2F75864bff-a9f9-4009-9580-352b7036639e%2Fudg4sf5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A monopolist is selling sneakers to students and non-students. The
Marginal Cost of an extra pair of sneakers is $9. Student demand is given
by Q=240-P and Non-student demand is given by Q=400-2P. Right now
they act like a single-price monopolist for the entire market.
If they decide to do group price-discrimination (assume they can) what
will be the CHANGE in prices for students? Don't forget to include the
negative sign if the price for student falls with group price-discrimination.
-20
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