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Q1. Consider regulation of a monopolist of unknown costs. What are the parallels between regulation in this case and second-degree price discrimination? Q2. Product differentiation
Q1. Consider regulation of a monopolist of unknown costs. What are the parallels between regulation in this case and second-degree price discrimination?
Q2. Product differentiation aids collusion in a infinitely-repeated game. Discuss
Q3. Show how a monopolist always sells on the elastic section of a linear demand curve if it has positive marginal costs.
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