A monopoly has 2 groups of potential consumers: group 1, with aggregate demand curve D1: 91=20p,3 and group 2, with aggregate demand curve D2 q2=24-2p2. The monopoly's cost function is c(Q)=3+6Q. If the monopoly may engage in 3rd-degree price discrimination, what will be the price difference between the 2 groups? O a. p1-p2-9 O b. Pr-P2=0 O c. Pi-P2-6 O d. None of the other answers. O e. P1-p2=18
A monopoly has 2 groups of potential consumers: group 1, with aggregate demand curve D1: 91=20p,3 and group 2, with aggregate demand curve D2 q2=24-2p2. The monopoly's cost function is c(Q)=3+6Q. If the monopoly may engage in 3rd-degree price discrimination, what will be the price difference between the 2 groups? O a. p1-p2-9 O b. Pr-P2=0 O c. Pi-P2-6 O d. None of the other answers. O e. P1-p2=18
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A monopoly has 2 groups of potential consumers: group 1, with aggregate demand curve D1:
91=20p,3 and group 2, with aggregate demand curve D2 q2=D24-2p2. The monopoly's cost
function is c(Q)=3+6Q. If the monopoly may engage in 3rd-degree price discrimination, what will
be the price difference between the 2 groups?
O a. p1-p2=9
O b. Pr-P2=0
O c. Pp1-p2=6
O d. None of the other answers.
O e. p1-P2=18
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