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I .ld. Multiple twopart taris. Consider the model of nonlinear pricing introduced in Section 6.2. Suppose there are two types of consumers, in equal number:

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I .ld. Multiple twopart taris. Consider the model of nonlinear pricing introduced in Section 6.2. Suppose there are two types of consumers, in equal number: type 1 have demand 131(1)] = 1 p, and type 2 have demand Drip] = 2 [1 p]. Marginal cost is zero. (b) Show that if the seller must set a single two-part tariff, then the optimal values are f = 32 and p = =, for a profit of 9 16

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