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Assume a manufacturing firm has identified two customer segments for its product. Demand curves for the two segments are d 1=13,000-15 p 1and d 2=13,000-25

Assume a manufacturing firm has identified two customer segments for its product. Demand curves for the two segments ared1=13,000-15p1andd2=13,000-25p2respectively.Assume production cost isc= $100 per unit.

  • What price should the firm charge each segment if its goal is to maximize profits?
  • If the firm was to charge a single price over both segments, what should it be?

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