Sells product to two groups of consumers

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You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -2, while group 2’s is -5. Your marginal cost of producing the product is $10. a. Determine your optimal markups and prices under third-degree price discrimination. Instruction: Round your answers to two decimal places. Markup for group 1: Price for group 1: $ 20 Markup for group 2: 1.25 Price for group 2: $12.50 INEED THE MARK UP FOR GROUP 1 AND IT IS NOT .66 OR .67

Reference no: EM131236593

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