Reference no: EM132518250

Assume a monopolist sells two goods, Good 1 and Good 2, to each of two populations of consumers; population A and population B. Assume the number of consumers in the groups are the same. Assume the cost of producing the goods is zero. The consumers in each group assign a maximum monetary value to each good as shown in her table displayed below.

Consumers in population A Consumers in population B

Good 1 $ 4,500.00 $ 5,000.00

Good 2 $ 1,500.00 $ 1,000.00

1) Suppose the monopolist only sold the goods separately. What prices will the monopolist charge for Good 1 to maximize revenues for Good 1?

a) $4,500
b) $5,000
c) $1,500
d) $1,000

2) Suppose the monopolist only sold the goods separately. What prices will the monopolist charge for Good 2 to maximize revenues for good 2?

a) $4,500
b) $5,000
c) $1,500
d) $1,000