How much advertise cost

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A monopolist has two types of customers.There are 100 of type A, who will each pay up to $10 for a single unit of the good, and 50 of type B, who will each pay up to $8 Neither is willing to purchase additional units at any price. If it must charge a uniform price, find that price. a Assume that spending $80 on advertising will attract 100 more type B customers. should the monopolist advertise? if so, what will happen to price?

Reference no: EM13187987

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