What will be her profit-maximizing price

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Reference no: EM13154747

A seller produces output with a constant marginal cost MC = 2. Suppose

there is one group of consumers with the demand curve p1 = 16 ? q1 and another

group with the demand curve p2 =10? 0.5q2

(a) If the seller can price discriminate between the two markets, what prices would she charge the different groups?

(b) If the seller cannot discriminate, but must charge the same price p1 = p2 = p to each group, what will be her profit-maximizing price?

Reference no: EM13154747

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