SuperTutor

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    Harvard university
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Category > Economics Posted 22 Jun 2017 My Price 4.00

profits resulting from this strategy.

1. You are a manager of a firm that charges customers $16 per unit for the first unit purchased, and $12 per unit for each additional unit purchased in excess of one unit. The accompanying graph summarizes your relevant demand and costs. (P=18-2Q, MC=8).

 

a) Determine the profits resulting from this strategy.

 

b)   How much less you would earn with one price strategy and how much additional profit you would you earn if you were able to perfectly price discriminate? 

Answers

SuperTutor
(15)
Status NEW Posted 22 Jun 2017 03:06 AM My Price 4.00

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