Extend the two-period markdown model in Section 12.1.1 to three periods. That is, assume that the price-response function is d(p) = 1,000 – 100p, marginal cost is 0, and customers purchase as soon as price falls below their willingness to pay.

What three prices, p1, p2, and p3, will maximize total revenue? What if there are four periods and four prices? What is the general formula for n prices?