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Suppose you are a manager of a monopolistically competitive firm and have the opportunity to practice two-part pricing.If a typical customer's (inverse) demand for your
Suppose you are a manager of a monopolistically competitive firm and have the opportunity to practice two-part pricing.If a typical customer's (inverse) demand for your product isP = 75 - 2.5Qand your total cost function isC(Q) = 5Q, what should you charge per unit?
What should you charge as the fixed fee / entry fee?
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