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Assignment:
Consider a monopoly firm selling small artificial Christmas trees. The demand function is given as:
P = 100 - 3Q
The marginal cost of production is constant and is given as:
MC = 4
Answer all the questions below. This is a multiple fill-in-the-blank question. All answers will be whole numbers.
What is the vertical intercept for the demand function?
Assume this monopoly is a single price monopoly.
Now assume this monopoly engages in perfect price discrimination.
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