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Instructions: Answer all parts of the following exercise. Question: A monopolist faces some consumers (called group-H consumers) with an inverse demand function for each
Instructions: Answer all parts of the following exercise. Question: A monopolist faces some consumers (called group-H consumers) with an inverse demand function for each consumer given by p 80-q. The firm's total cost function is given by: C(q) = 20q (so that MC-20 for all q). First suppose that the firm only uses linear pricing (i.e., charges only a unit price p).
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