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Find profit maximizing price by incremental testing of MR vs MC.Notice the optimal price occurs at a price where elasticity (absolute value) is greater than

  • Find profit maximizing price by incremental testing of MR vs MC.Notice the optimal price occurs at a price where elasticity (absolute value) is greater than 1.0--i.e., in a range where revenues decrease as price increases.Explain how profits can increase when revenues are decreasing
  • Discuss how Universal can increase profits via indirect price discrimination.Define indirect price discrimination.Provide data that shows it works.Compute and discuss incremental profits due to indirect price discrimination.

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