Suppose a monopolist produces at constant marginal cost and is able to discriminate between two
groups of consumers. The demand in each group is linear. Would the monopolist discriminate
(charge different prices to the two groups) if the slope of each inverse demand were the same, but
vertical intercepts were different? What if vertical intercepts were the same but slopes were
different?

Posted Date: 12/1/2012 1:22:00 PM | Location : Canada

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