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Firm can practice perfect price discrimination

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Reference no: EM13995805

A firm faces the demand curve Q = 20 – 0.8P and marginal cost MC = 2.5Q.

a. If the firm cannot price-discriminate, what is the profit-maximizing price and quantity?

b. If the firm can practice perfect price discrimination, how many units will it sell?

Reference no: EM13995805

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