Question: Studying for finals. are these numbers correct and need help with versioning. These numbers are subrtraced? Question 8 10 paints Suppose that a monopolist is
Studying for finals. are these numbers correct and need help with versioning. These numbers are subrtraced?

Question 8 10 paints Suppose that a monopolist is selling Coffee to two types of consumers. The rst type is willing to pay $4 for a cup, while the second type is only willing to pay $2. It costs the monopolist $0.50 to make a cup. However, the monopolist can also sell an inferior version of coffee that the rst type is willing to pay $1.50 for and the second type is also willing to pay $1.50 for. It also costs $0.50. Each type will only buy one cup of coffee. If they sell both versions of coffee, what will be the price for the premium version? o 2.5 .A. 3 A- 3.5 m 4 LI l Suppose that a monopolist is selling Coffee to two types of consumers. The rst type is willing to pay $4 for a cup, while the second type is only willing to pay $2. It costs the monopolist $0.50 to make a cup. However, the monopolist can also sell an inferior version of coffee that the rst type is willing to pay $1.50 for and the second type is also willing to pay $1.50 for. It also costs $0.50. Each type will only buy one cup of coffee. If they sell both versions of coffee, what will be the prot? 0 4 A. 5 A 4.5 Q est'on 10 10 POintS Save Answer u I If a monopolist is charging to groups different prices, aka 3rd degree price discrimination, then which of the following is true at the prices the monopolist chooses? -A- The Marginal Revenue from the group with the more inelastic demand is higher. -A- The Marginal Revenue from the group with the more inelastic demand is lower. -A- The price for the group with the more inelastic demand is higher. A The price for the group with the more inelastic demand is lower
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
