Use this information to answer the questions that follow The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters. The marginal cost of adding each additional passenger is $100. SkyMasters is a monopoly power for its region. Customer Maximum Willingness to Pay Age Harold $400 Leslie $350 Jay $300 Kristen $250 Ivana $200 Matt $150 50 2 45 $300 and $200 $350 and $200 $400 and $150 $400 and $200 42 21 20 18 If SkyMasters could charge two different prices based on the age of the customer, what would those prices be? (Hint: compare the profit for each option below and choose the largest one)

Use this information to answer the questions that follow The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters. The marginal cost of adding each additional passenger is $100. SkyMasters is a monopoly power for its region. Customer Maximum Willingness to Pay Age Harold $400 Leslie $350 Jay $300 Kristen $250 Ivana $200 Matt $150 50 2 45 $300 and $200 $350 and $200 $400 and $150 $400 and $200 42 21 20 18 If SkyMasters could charge two different prices based on the age of the customer, what would those prices be? (Hint: compare the profit for each option below and choose the largest one)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 4CQQ

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