Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is The second type is residential customers, and their demand is Laura's marginal cost function is If Laura practices third-degree price discrimination and charges business customers $35 and residential customers $15, is Laura maximizing profits?

Question

Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is  The second type is residential customers, and their demand is  Laura's marginal cost function is  If Laura practices third-degree price discrimination and charges business customers $35 and residential customers $15, is Laura maximizing profits?

Quizplus · Accepted Answer

The Answer of Internet service in the local market is supplied by Laura's Internet Service. Laura has two types of consumers. The first type of customers is local businesses, and their demand for internet service is  The second type is residential customers, and their demand is  Laura's marginal cost function is  If Laura practices third-degree price discrimination and charges business customers $35 and residential customers $15, is Laura maximizing profits?

Internet Service in the Local Market Is Supplied by Laura's