12.9. Consider the manufacturer of golf balls in Problem 12.8. The firm faces the demand curve P...
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12.9. Consider the manufacturer of golf balls in Problem 12.8. The firm faces the demand curve P ! 100 " Q, and operates with a marginal cost of 10 for all units produced. Among all the possible block tariffs (with two blocks), what block tariff structure will maximize profit?
In other words, what choices of P1, Q1 for the first block and P2, Q2 for the second block will maximize profit?
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