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I. Fore! is a seller of golfballs that wants to increase its revenues by offering a quantity discount. Demand for Forel's golf balls is Q
I. Fore! is a seller of golfballs that wants to increase its revenues by offering a quantity discount. Demand for Forel's golf balls is Q = 100 2P. lts marginal cost is MC = 5. What declining 2 block pricing structure will maximize prot? In other words, what choices of P1, Q1 for the first block and P2, Q2 for the second block will maximiZe profit? Calculate this prot assuming xed costs are zero
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