Use the following to answer questions 12-14: .A monopolist faces two consumer groups: old and young. The demand of old clients for the output of the monopolist is Po = 8-0.5Qo. The demand of young clients for the output of the monopolist is Py = 10-Qy. The cost is C(Q) = 2Q. If the monopolist can price discriminate between the two groups (i.e., charge a different uniform price to each group), 12 what price will old and clients be charged Select one: O a. 0
Use the following to answer questions 12-14: .A monopolist faces two consumer groups: old and young. The demand of old clients for the output of the monopolist is Po = 8-0.5Qo. The demand of young clients for the output of the monopolist is Py = 10-Qy. The cost is C(Q) = 2Q. If the monopolist can price discriminate between the two groups (i.e., charge a different uniform price to each group), 12 what price will old and clients be charged Select one: O a. 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please answer questions 12 through 14.

Transcribed Image Text:Use the following to answer questions 12-14:
.A monopolist faces two consumer groups: old and young. The demand of old
clients for the output of the monopolist is Po=8-0.5Qo. The demand of young
clients for the output of the monopolist is Py = 10-Qy. The cost is C(Q) = 2Q. If
the monopolist can price discriminate between the two groups (i.e., charge a
different uniform price to each group),
12 what price will old and clients be charged
Select one:
O a. 0<P <10
O b. 10<P <30;
O c. 30<Po <60;
O d. 60<Po <100;
O e. A) None of the above

Transcribed Image Text:what price will young clients be charged?
Select one:
O a. 0<Py <10;
O b. 10<Py <30;
O c. 30<Py <60;
O d. 60<P, <100;
O e. None of the above
What will be the firm's profit? pi
Select one:
O a. 0<pi <1000;
O b. 1000<pi<2000;
O c. 2000<pi<3000;
O d. 3000<pi <4000;
O e. None of the above
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