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Business, 05.05.2020 04:06 jalenshayewilliams

Uppose that a monopolist is selling Coffee to two types of consumers. The first type is willing to pay $4 for a cup, while the second type is only willing to pay $2. It costs the monopolist $0.50 to make a cup. However, the monopolist can also sell an inferior version of coffee that the first type is willing to pay $2.00 for and the second type is also willing to pay $1.50 for. It also costs $0.50. Each type will only buy one cup of coffee. If they sell both versions of coffee, what will be the profit?

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