8. Suppose the manager in Technical Problem 7 decides to price-discriminate. The longrun marginal cost is estimated
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8. Suppose the manager in Technical Problem 7 decides to price-discriminate. The longrun marginal cost is estimated to be
a. How many units should the manager produce and sell?
b. How should the manager allocate the profit-maximizing output between the two markets?
c. What prices should the manager charge in the two markets?
d. Measured at the prices found in part
c, which market has the more elastic demand?
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Related Book For
Managerial Economics
ISBN: 9780073375915
10th Edition
Authors: Christopher R Thomas, S Charles Maurice
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