Problem
You're almost there. Again, let's consider a monopolist with the simple cost function C= q in an industry populated by two types of consumers, with exactly equal numbers of each. One type (type A) has individual inverse demand function P=100 - q, and the other type (B) has individual inverse demand function P = 50-2q.
a. Suppose the firm can engage in third-degree price discrimination (charging a different price for each type). What price should the firm charge type A consumers?
b. What price should the firm charge type B consumers?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.