Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is The resulting marginal revenue function for business customers is The second type is residential customers, and residential demand is The resulting marginal revenue function for residential customers is Laura's marginal cost function is If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?

Question

Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is  The resulting marginal revenue function for business customers is  The second type is residential customers, and residential demand is  The resulting marginal revenue function for residential customers is  Laura's marginal cost function is  If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?

Quizplus · Accepted Answer

The Answer of Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is  The resulting marginal revenue function for business customers is  The second type is residential customers, and residential demand is  The resulting marginal revenue function for residential customers is  Laura's marginal cost function is  If Laura practices third-degree price discrimination, what are the profit maximizing prices she charges business and residential customers?

Internet Service in the Local Market Is Supplied by Laura's