A monopolist is selling sneakers to students and nort-students. The Marginal Cost of an extra pair of sneakers is $8. Student demand is given by Q=133-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 nort-students. The Marginal Cost of an extra pair of sneakers is $8. Student demand is given by Q=133-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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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