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A beer of the week club thinks it has two types of customers, High-end and Guzzlers. The firm's marginal cost of sending a large bottle
A beer of the week club thinks it has two types of customers, High-end and Guzzlers. The firm's marginal cost of sending a large bottle to either type is $10. If the demand elasticity of High-end customers is 1.5, a. Find the profit-maximizing price for High-end customers. b. If the profit-maximizing price for Guzzlers is $12.50, find their elasticity of demand. A beer of the week club thinks it has two types of customers, High-end and Guzzlers. The firm's marginal cost of sending a large bottle to either type is $10. If the demand elasticity of High-end customers is 1.5, a. Find the profit-maximizing price for High-end customers. b. If the profit-maximizing price for Guzzlers is $12.50, find their elasticity of demand
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