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Suppose you are employed at a monopolistic company as a research (pricing) economist and you are deriving the behavior of two markets based on demand curves given by:
D1(p1)=80-p1
D2(p2)=80-2p2
Assume that the marginal cost is constant at $5 a unit.
(a) If it can price discriminate, what price should it charge each market in order to maximize profits?
(b) If it can't price discriminate, what price should it charge?
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A loan application takes as input loan amount, credit scores, salary history, tax history and other relevant data and produces a single result
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