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A monopoly offers a discount to Group Seniors. The firm faces the linear inverse demand function of p = 60-5Q for Group Seniors and
A monopoly offers a discount to Group Seniors. The firm faces the linear inverse demand function of p = 60-5Q for Group Seniors and p2 = 90 - 10Q2 for Group Adults. The marginal cost is 10. (a) What price would a profit-maximizing monopoly charge for each group if it is allowed to price discriminate? (b) What price would it charge if price discrimination by age is prohibited?
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
1st edition
978-0137036059, 133379094, 321566440, 137036051, 9780133379099, 978-0321566447
