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A monopoly with constant marginal costs of $50 can sell to three groups of potential consumers, with demands Q1 = 800 ? 0.2p, Q2 = 400 ? p, and Q3 = 700 ? 0.4p respectively. Find the optimal price- quantity combination in each market (i) if the firm is able to price-discriminate; (ii) if it is not able to price-discriminate.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91234499

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