Finding Optimal Price-quantity
A monopoly with constant marginal costs of $50 can sell to three groups of potential con- sumers, with demands Q1 = 800 − 0.2p, Q2 = 400 − p, and Q3 = 700 − 0.4p respectively. Find the optimal price-quantity combination in each market
(a) if the firm is able to price-discriminate;
(b) if it is not able to price-discriminate.
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