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There are three consumer types, with inverse demands P=20-Q; P=20-1.5Q, P=20-2Q, respectively. There are 100 customers of each type. Your MC-8, there are no
There are three consumer types, with inverse demands P=20-Q; P=20-1.5Q, P=20-2Q, respectively. There are 100 customers of each type. Your MC-8, there are no fixed costs. You are unable to differentiate between consumer types, but you would like to set multi-part tariffs in such a way that consumers will self-select into them. Derive the three pricing options you will set and the expected profit.
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Step 13 In case of different pricing options individuals prices are fixed as per mark...Get Instant Access to Expert-Tailored Solutions
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