104 368
Assignments Done
99.1%
Successfully Done
In January 2022

# Answer to Question #71435 in Microeconomics for rebecca

Question #71435
Suppose a monopolist is able to segment its market into 2 consumer groups based upon known differences in willingness to pay. Group A's demand function is given by P = 90 - 2Q and group B's demand function is given by P = 70 - 0.5Q. In addition, the marginal cost of producing and selling a unit to group A is the same as the marginal cost of producing and selling a unit to group B. Specifically, MC = 10. If the firm practices second degree (or multi-market) price discrimination, then total profit will be maximized by:
i. selling Q = 20 units at a price of P = $50 to members of group A ii. selling Q = 40 units at a price of P =$10 to members of group A
iii. selling Q = 60 units at a price of P = $40 to members of group B iv. selling Q = 80 units at a price of P =$30 to members of group B
1
Expert's answer
2017-12-01T14:44:06-0500
The answer to the question is available in the PDF file https://www.assignmentexpert.com/https://www.assignmentexpert.com/homework-answers/economics-answer-71435.pdf

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

#### Comments

No comments. Be the first!

### Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS