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Linda and Alberto consume the same product. They have the following demand curves for this product: Q Linda = 500 - 10 P Q Alberto

Linda and Alberto consume the same product. They have the following demand curves for this product:

QLinda= 500 - 10 P

QAlberto= 500 - 20 P

The marginal cost (MC) for the firm is $10.

  • Calculate the prices when the firm discriminates between the two consumers.
  • Is this a good strategy, or should the firm charge the same price to both of them?

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