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An international distributor charges different prices, P, and P2, for its regional and international customers. The corresponding demand functions are P1 = 121 - 1Q1;
An international distributor charges different prices, P, and P2, for its regional and international customers. The corresponding demand functions are P1 = 121 - 1Q1; and P2 = 325 - 3Q2. The total cost function is composed by a fixed cost of 2000 and a variable cost per unit equal to 30. The variable cost is the same for regional and international quantities (Q = Q1 + Q2). Determine the Price P2 to maximize total profit with price discrimination. Note: Round your result to 1 decimal position. Add your
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