A monopolist finds that the demand for its product varies by height: q = 3h — 2p, where h is the buyer's height. No resale is possible, so that the monopolist can price discriminate. Supposing the monopolist maximises profits, Taller people will pay higher prices and purchase a larger quantity than shorter people Taller people will pay lower prices and purchase a smaller quantity than shorter people Taller people will pay lower prices and purchase a larger quantity than shorter people Everyone will pay the same price, but older people will purchase more Taller people will pay higher prices and purchase a smaller quantity than shorter people

A monopolist finds that the demand for its product varies by height: q = 3h — 2p, where h is the buyer's height. No resale is possible, so that the monopolist can price discriminate. Supposing the monopolist maximises profits, Taller people will pay higher prices and purchase a larger quantity than shorter people Taller people will pay lower prices and purchase a smaller quantity than shorter people Taller people will pay lower prices and purchase a larger quantity than shorter people Everyone will pay the same price, but older people will purchase more Taller people will pay higher prices and purchase a smaller quantity than shorter people

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 13SQ

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