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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't price discriminate?
Correct Answer
130
135
170
90
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