A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer's demand for the product is Q d =...

QdP

2.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 -3, while group 2's is -2. Your marginal cost of producing the product is $70.

a. Determine your optimal markups and prices under third-degree price discrimination. 

Instructions:

Markup for group 1: 

Price for group 1: $  

Markup for group 2: 

Price for group 2: $