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A monopolist faces two consumer groups: old and young. The inverse demand of old clients for the output of the monopolist is Po=100-2Qo. The inverse demand of young clients for the output of the monopolist is Py=80=Qy. The marginal cost of supplying any type of client is MC=10. If the monopolist can price discriminate between the two groups (i.e., charge a different uniform price to each group), what price will old and young clients be charged?

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Manikan130

Monopolist maximize profit by producing where marginal revenue is equal to marginal cost. The old and young clients will be charged $55 and $45 respectively.

Define marginal revenue?

  • The cash an organization receives for each extra sale is known as marginal revenue.
  • In other words, it calculates how much money a company would make from selling one more good.
  • For instance, a baker's marginal revenue is $2 if they sell an additional loaf of bread for $2.
  • Change in Revenue / Change in Quantity equals Marginal Revenue.
  • The profit made by a company or individual when one more unit is produced and sold is known as a marginal profit.
  • Marginal refers to the additional expense or profit made when producing the following unit.
  • In terms of economics, marginal refers to having slightly more or slightly less of something.
  • It speaks of the results of using or providing one more unit of a good or service.

To learn more about marginal revenue refer to:

https://brainly.com/question/27373306

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