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Lerok [7]
2 years ago
9

A monopolist sells to tourists who have demand p1 = 14 – q1 at a price of $8.00. Residents have demand p2 = 10 – q2. The firm im

plements an OPD pricing plan. What price should the monopolist charge to the residents?
Business
1 answer:
Sergeu [11.5K]2 years ago
6 0

Answer:

Price charge to the residents = $4

Explanation:

Given:

p1 = 14 – q1 at a price of $8.00

p2 = 10 – q2

Find:

Price charge to the residents

Computation:

p1 = 14 – q1 at a price of $8

8 = 14 – q1

q1 = 6

In OPD q1 = q2

So,

p2 = 10 – q2

p2 = 10 – 6

p2 = $4

Price charge to the residents = $4

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