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2. (10 points) Consider a market of in total 5000 customers. Customers' WTP is uniformly distributed over [5, 10]. Now we would like to
2. (10 points) Consider a market of in total 5000 customers. Customers' WTP is uniformly distributed over [5, 10]. Now we would like to segment the market into three parts: (1) one segment with WTP less than or equal to 6; (2) one segment with WTP between 6 and 8, and (3) a segment with the WTP higher than 8. Develop the price response functions for all these three segments (both draw and specify algebraically).
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
