Question
A monopoly with constant marginal costs of $40 can sell to two groups of potential consumers, with demands Q1= 800 - 0.2p and Q2 =
A monopoly with constant marginal costs of $40 can sell to two groups of potential consumers, with demands Q1= 800 - 0.2p and Q2 = 700 - 0.4p, respectively
a. Find the optimal price-quantity combination in each market if the firm is able to price-discriminate.
b. Find the optimal price-quantity combination in each market if it is not able to price-discriminate.
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Essentials of Business Driven Information Systems
Authors: Paige Baltzan, Amy Phillips
1st edition
1260004716, 978-0073376721
