Sun Oct 31 AA A ezto.mheducation.com + 9.doc : BUSINES... Search Results | Course... Homework: Pricing Strat... x Question 5 - Homework:... ework: Pricing Strategies ... Saved Help Save & Exit Submit Check my work You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1's elasticity of demand is -2, while group 2's is -4. Your marginal cost of producing the product is $40. a. Determine your optimal markups and prices under third-degree price discrimination. ok Instructions: Enter your responses rounded to two decimal places. Markup for group 1: nces 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. ? 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. ? At least one group has elasticity of demand greater than 1 in absolute value. ? We are able to prevent resale between the groups