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Suppose a company in the industry. Consumers all have the following demand, p = 400-4q. The marginal cost of production is $40. Finally, each consumer
Suppose a company in the industry. Consumers all have the following demand, p = 400-4q. The marginal cost of production is $40. Finally, each consumer faces the same price menu: a subscription/entrance fee, and a usage price per unit consumed. a) Calculate the set of optimal prices and production levels
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