Total consumers can be divided into Group A and Group B, and it is assumed that a monopoly company makes third-degree price discrimination. The demand function of each group and the cost function of the company are as follows. QA = 10-PA, QB = 12-2 PB, C(Q) = Q2 (1) Find the third-order price discrimination price that maximizes the profit of the company. (2) Assume that price discrimination between groups is prohibited by law. Find the maximum profit price.

Survey Of Economics
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ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
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Q. Total consumers can be divided into Group A and Group B, and it is assumed that a monopoly company makes third-degree price discrimination. The demand function of each group and the cost function of the company are as follows.

QA = 10-PA, QB = 12-2 PB, C(Q) = Q2

(1) Find the third-order price discrimination price that maximizes the profit of the company.

(2) Assume that price discrimination between groups is prohibited by law. Find the maximum profit price.

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