our marginal cost per ride is providing this service; that is, you're a monopolist. On...
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our marginal cost per ride is providing this service; that is, you're a monopolist. On any given weekend, there are six customers who want a ride-three men and three women. The table below shows the most each person is willing to pay for a ride. o keep things simple, assume you are the only person Customer Maximum willingness to 70 60 50 Kristine 40 30 Samantha 20 John ar Peter Paul Let's see how you would maximize profit using different pricing schemes. 6th attempt Part 1 (1 point) See Hint If you could charge only a single price, you would earn $ in profit. Part 2 (1 point) See Hint Suppose you could charge men and women different prices. The tables below show each group's demand Maximum Customer John Peter Paul willingness to pay $70 50 30 Maximum Customer Mary Kristine Samantha willingness to pay $60 40 20 If you charge men one price and women another price, you would earn profit. S in Part 3 (1 point) 9 See Hint How much profit would you earn if you practiced perfect price discrimination? $|
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