If a monopoly is price discriminating between two groups, A and B, based on observable customer characteristics, there is no difference in the marginal cost of selling to the two groups, and the elasticity of demand for group A is -1.5 while the elasticity of demand for group B is -2.1, which of the following is true?
A. The markup and price for group A customers will be higher than for group B customers.
B. The markup and price for group B customers will be higher than for group A customers.
C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher.
D. The price for group A customers will be higher than for group B customers, but there is not enough information to determine which markup will be higher.
A. The markup and price for group A customers will be higher than for group B customers.
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Asymmetric information is a universal problem. This would suggest that financial regulations
A) in industrial countries are an unqualified failure. B) differ significantly around the world. C) in industrialized nations are similar. D) are unnecessary.
Under the current managed float exchange rate regime; countries with surpluses in their balance of payments frequently do not want to see their currencies appreciate because it makes their goods ________ expensive abroad and foreign goods ________ in
their countries. A) more; cheaper B) more; costlier C) less; cheaper D) less; costlier