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Presume that consumers contemplating buying a network service have reservation prices uniformly distributed on the interval [0, 50] measured in dollars. Demand by consumer
Presume that consumers contemplating buying a network service have reservation prices uniformly distributed on the interval [0, 50] measured in dollars. Demand by consumer with reservation price w, for the service is qP-0 iffw-p qP-1 if fwi p a. Calculate the demand function for the service. b. What is the profit maximizing price for the service?
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Industrial Organization Markets and Strategies
Authors: Paul Belleflamme, Martin Peitz
2nd edition
1107069971, 1107069978, 978-1107069978
