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Suppose there are a total of D consumers whose valuations (v, v;) for two products are distributed uniformly in the area [0,1] x [0,1]. This
Suppose there are a total of D consumers whose valuations (v, v;) for two products are distributed uniformly in the area [0,1] x [0,1]. This means that if you take a subset S of the area [0,1] x [0,1], then the number of consumers who are \"located\" in S is equal to area(s) X area([0,1] x [0,1]) Suppose a firm is currently selling each good at an individual price of $0.5. The costs of production are 0. o What are the firm's profits? o Ifit also introduces a bundled option for $0.8, calculate the increase or decrease in its profits
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