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Assume that a local train station has a monopoly over train rides. The firm has estimated that its market demand curve can be drawn from
Assume that a local train station has a monopoly over train rides. The firm has estimated that its market demand curve can be drawn from the following equation P Q Let MC AC The firm has determined that younger consumers under are willing to pay up to $ per ticket for a train ride and that older consumers or older are willing to pay up to $ per ticket for a train ride. If the firm price discriminates what is their profit?
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