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5. A business that makes and sells concrete blocks faces two types of customers with the following inverse demand curves: Type A: p = 3.5

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5. A business that makes and sells concrete blocks faces two types of customers with the following inverse demand curves: Type A: p = 3.5 0.002Q Type B: p = 3 0.0010 where Q measures the number of blocks and P is the price per block. The marginal cost is $0.50. a. Suppose the business wants to use discounting to price-discriminate. Calculate the price per block both with and without the quantity discount. What minimum quantity will the rm set for the quantity discount? How much consumer surplus do Type A buyers receive from the regular price and the quantity-discount price? How much consumer surplus do Type B buyers receive from the regular price and the quantity-discount price? Based on your answers to parts b and c, are the prices incentive-compatible

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