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A monopolist has two sets of customers. The inverse demand for Group 1 is described by P=200-X. For Group 2, the inverse demand is P=100-X.
A monopolist has two sets of customers. The inverse demand for Group 1 is described by P=200-X. For Group 2, the inverse demand is P=100-X. The monopolist faces constant marginal cost of 20 and fixed costs are zero.
What is the profit maximizing quantity if the firm CAN price discriminate?
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