Assume an economy lasts for 2 periods in period 1 only 1, Ask an Expert

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Assume an economy lasts for 2 periods. In period 1, only 1 agent is born, this agent lives for 2 periods. In period 2, two agents (who only live in period 2) are born. The consumer born in period 1 is willing to pay a max price of $100 per period of TV usage. Each consumer born in period 2 is willing to pay a max of $50 for using a TV in period 2. Suppose that there is only 1 firm producing TVs which are durable goods and which have 0 marginal production costs. Calculate the prices the selling monopoly charges for TV sets in periods 1 and 2.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9722480

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