Exercise 3 Suppose a supplier can ident.docx - Exercise 3...

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Exercise 3 Suppose a supplier can identify two distinct groups of customers, students and nonstudents. The demand by students, qs and the demand by nonstudents, qn are given by: q:=100-8p. and q.=100-4p, respectively. The total demand, q= qs+qn, is then q=200-12p. The supplier's cost of $ 2 per unit is constant regardless of the number of units supplied. a. What price maximizes profits if the firm charges everyone the same price? b. Show that the firm can secure greater profits by charging different prices for the two groups than it can secure by charging everyone the same price 1. L.CUM San Player Homework.aspx?homeworkld- 541698445&questionid=18flushed=false&cid=56742 - INFO
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