A monopolist is selling sneakers to students and non-students. The marginal cost of an extra pair of sneakers is 7$. Student demand is Q=189-P and no student demand is Q=400-2P. Right now they act as a single-price monopolist for the entire market. If they decide to do group price discrimination, what will be the CHANGE in prices for students?

A monopolist is selling sneakers to students and non-students. The marginal cost of an extra pair of sneakers is 7$. Student demand is Q=189-P and no student demand is Q=400-2P. Right now they act as a single-price monopolist for the entire market. If they decide to do group price discrimination, what will be the CHANGE in prices for students?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 1SQ

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