Suppose that there are 7 potential purchasers of a Krustyburger. Each individual will buy at most one burger and Krustyburger has a monopoly. The table below lists their maximum willingness to pay and their ages. The cost of production for each Krustyburger is zero Name, age Maximum Willingness to Pay $4 $10 $3 $1 $3 $7 $3 Marge, 34 Homer, 38 Lisa, 7 Maggie, 2 Ned, 46 Quimby, 50 Bart, 9 Suppose that instead, they have two prices one price for adults (over the age of 12) and one for children. What price will they set for each? & The price for adults will be 57 and the price for children will be $3 Ob The price for adults will be $3 and the price for children will be $1 O The price for adults will be $4 and the price for children will be $3 Od The price for adults will be $10 and the price for children will be $3

Economics For Today
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ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter9: Monopoly
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Suppose that there are 7 potential purchasers of a Krustyburger. Each individual will buy at most one burger and Krustyburger has a monopoly. The table below lists their
maximum willingness to pay and their ages. The cost of production for each Krustybarger is zero
Name, age Maximum Willingness to Pay
$4
Marge, 34
Homer, 38
$10
$3
Lisa, 7
Maggie, 2
Ned, 46
Quimby, 50
Bart, 9
$1
$3
$7
$3
Suppose that instead, they have two prices: one price for adults (over the age of 12) and one for children. What price will they set for each?
a. The price for adults will be 57 and the price for children will be $3
Ob. The price for adults will be $3 and the price for children will be $1
O The price for adults will be $4 and the price for children will be $3
Od. The price for adults will be $10 and the price for children will be $3
Transcribed Image Text:Suppose that there are 7 potential purchasers of a Krustyburger. Each individual will buy at most one burger and Krustyburger has a monopoly. The table below lists their maximum willingness to pay and their ages. The cost of production for each Krustybarger is zero Name, age Maximum Willingness to Pay $4 Marge, 34 Homer, 38 $10 $3 Lisa, 7 Maggie, 2 Ned, 46 Quimby, 50 Bart, 9 $1 $3 $7 $3 Suppose that instead, they have two prices: one price for adults (over the age of 12) and one for children. What price will they set for each? a. The price for adults will be 57 and the price for children will be $3 Ob. The price for adults will be $3 and the price for children will be $1 O The price for adults will be $4 and the price for children will be $3 Od. The price for adults will be $10 and the price for children will be $3
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