**Practice** A monopolist produces two versions of a software: basic or advanced. There are two typesof consumers in the market. Type A consumers have a willingness to pay (WTP) of $30for the basic version and $50 for the advanced version. Type B consumers have a WTPof $20 for the basic version and $35 for the advanced version. If the monopolist wants toimplement second-degree discrimination, such that each consumer type chooses a differentproduct, which prices would be the best option?(a) Pbasic(b) Pbasic===15 and Padvanced20 and Padvanced10 and Padvanced3035(c) Pbasic35(d) Pbasic20 and Padvanced=40(e) None of the above options is correct.

Best price option would be:Option C (PBasic =20 and PAdvanced = 35) Explanation:Detailed…

Answered: A monopolist produces two versions of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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