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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?
objective of afirm
Instructions to Students 1. Answer all the questions, using economic models where appropriate. Begin a question on a new page. 2. Please attach a copy of the assignment cove
Regardless of the market structure, oligopolist and the monopolist maximize their TR when MR=0. Do you agree?
consumers oriented application
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