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Economics

Marginal cost is $2

Demand of product is: P=30-5Q

a) Implement a 2-part pricing scheme for the product.

b) Explain why the total profit (from all sales) is still likely to lower with this pricing scheme than with perfect price descrimination despite fixed fee equal to the entire consumer surplus of a typical customer.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9445209

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