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A monopolist sells its product to two different groups of consumers. The inverse demand curve for the first group isp1=40-2q1 and the inverse demand curve
A monopolist sells its product to two different groups of consumers. The inverse demand curve for the first group isp1=40-2q1
and the inverse demand curve for the second group is p2 =120-4q2
he monopoly produces at constant marginal and average cost,MC = AC = 8
If resale could be prevented so that the monopolist could engage in 3rddegree price discrimination, what would be its profit-maximizing price, quantity and profit?
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