You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -5, while

You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group
1’s elasticity of demand is -5, while group 2’s is -6. Your marginal cost of producing the product is $20.
a. Determine your optimal markups and prices under third-degree price discrimination.
Instructions: Enter your responses rounded to two decimal places.
Markup for group 1:
Price for group 1: $
es
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

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