18.3 Return to the nonlinear pricing problem facing the monopoly coffee shop in Example 18.4, but now
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18.3 Return to the nonlinear pricing problem facing the monopoly coffee shop in Example 18.4, but now suppose the proportion of high demanders increases to 2/3 and the proportion of low demanders decreases to 1/3. What is the optimal menu in the second-best situation? How does the menu compare to the one in Example 18.4?
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Related Book For
Microeconomic Theory Basic Principles And Extension
ISBN: 9781111525538
11th Edition
Authors: Walter Nicholson, Christopher M. Snyder
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