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Determine the profit maximizing price and quantity
A firm has segmented its market into the following demand functions:
P1 = 500 – 50Q P2 = 500 – 20Q with a cost function: MC=AC =20 a. Determine the profit maximizing price and quantity and corresponding economic profits if the firm charges all customers the same price.b. Determine the profit maximizing prices and quantities and corresponding economic profits if it practices third-degree price discrimination.c. What are the conditions necessary for price discrimination to succeed?
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Do not submit more than 1 file in the Canvas submission link. A few years ago peanut farmers in India experienced a super-bumper crop due to favorable weather conditions. Initially
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Assume that the market for lamb is perfectly competitive. Using an appropriate model (or models) illustrate and explain a. How a competitive market arrives at equilibrium
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