instructions: Enter your responses rounded to two decimal places. a. Determine your optimal markups and prices under third-degree price discrimination. Markup for group 1:

Price for group 1: $ Markup for group 2:

Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.

check all that apply

• At least one group has elasticity of demand greater than 1 in absolute value.
• At least one group has elasticity of demand less than one in absolute value.
• There are two different groups with different (and identifiable) elasticities of demand.
• We are able to prevent resale between the groups.