You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Ana

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You are the manager of a monopoly that sells a product to twogroups of consumers in different parts of the country. Analysts atyour firm have determined that group 1’s elasticity of demand is−3, while group 2’s is −5. Your marginal cost of producing theproduct is $40. Instructions: Enter your responses rounded to twodecimal places.
a. Determine your optimal markups and prices under third-degreeprice discrimination.
Price for group 1:
Markup for group 2:
Price for group 2:
b. Which of the following are necessary conditions forthird-degree price discrimination to enhance profits. Instructions:In order to receive full credit, you must make a selection for eachoption. For correct answer(s), click the box once to place a checkmark. For incorrect answer(s), click twice to empty the box. checkall that apply
There are two different groups with different (and identifiable)elasticities of demand.
We are able to prevent resale between the groups.
At least one group has elasticity of demand less than one inabsolute value.
At least one group has elasticity of demand greater than 1 inabsolute value.