1.5. Show why optimal, third-degree price discrimination requires that marginal revenue for each group of consumers equals...

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1.5. Show why optimal, third-degree price discrimination requires that marginal revenue for each group of consumers equals marginal cost. Use this condition to explain how a firm should change its prices and total output if the demand curve for one group of consumers shifts outward, causing marginal revenue for that group to increase.

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Microeconomics

ISBN: 9780132080231

7th Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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