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Suppose Spotify is a firm with market power that sells its' annual subscriptions for premium service to two different groups of consumers. The demand curve
Suppose Spotify is a firm with market power that sells its' annual subscriptions for premium service to two different groups of consumers. The demand curve for group 1 is given by: P1 = 130 - 1.67Q1 The demand curve for group 2 is given by: P2 = 230 - 6.25Q2 The common marginal cost function is given by: MC = 30 Solve for the profit maximizing quantities and prices for each of the two different groups of consumers
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