Can you please assist with the following question and please not the I have solved the group price for one and two;however, I need the answer to the markup for group 1 and 2 and the incorrect answer is 20% and 25% for the markup of 1&2.
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -6, while group 2’s is -5. Your marginal cost of producing the product is $50.
a. Determine your optimal markups and prices under third-degree price discrimination.