A Monopolist Has Segmented Its Customers into Three Groups,A,B,and C,and

question 57

Multiple Choice

A monopolist has segmented its customers into three groups,A,B,and C,and is discriminating prices between them.Each type A customer has a price elasticity of demand equal to 1.2;each type B customer has a price elasticity of demand equal to 6;and each type C customer has a price elasticity of demand equal to 11.If the firm charges type C customers $11 per unit,what prices should it charge its type A and type B customers in order to maximize profit?

• A)Type A = $1.20 per unit and type B = $6.00 per unit
• B)Type A = $1.33 per unit and type B = $1.66 per unit
• C)Type A = $12.00 per unit and type B = $6.00 per unit
• D)Type A = $60.00 per unit and type B = $12.00 per unit

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