Suppose the monopolist can only charge one price

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Reference no: EM13774085

Suppose a bar has two types of clients: men and women.

Men have a demand for drinks Q(m) = 10 - P

Women have a demand for drinks Q(w) = 5 - 2P

The marginal cost (MC) of producing one drink is 1.

Part 1 - Suppose the monopolist can only charge one price. What price would he charge?

Part 2 - Suppose the monopolist engaged in third degree price discrimination. What prices would he charge?

Part 3 - Suppose the monopolist charged a serparte drink price to men and women. What would those prices be?

Reference no: EM13774085

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