Question: 1) Suppose you can separate consumers into two groups. Group 1 has a price elasticity of demand = -4 and group 2 has a price

1) Suppose you can separate consumers into two groups. Group 1 has a price elasticity of demand = -4 and group 2 has a price elasticity of -6. If you could conduct third degree discrimination, which group would you charge a higher price to? Why? Suppose the profit maximizing price for group2 is $36. What price should you charge group 1.

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A key factor in choosing the type of contract is the uncertainty of the:

Population

The feeling of boredom.

2. In this chapter, the reader should reflect on the following concepts: