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Suppose there are three types of chip consumers in the world with three different inverse demand functions given by Pa=30-1/2P, Pb=40-1/2P, and Pc=50-1/2P. The marginal cost of the monopoly that produces chips is a constant $20. What size packages should the perfectly price discriminating monopolist make? What price should the price discriminating monopolist charge for each package?
How much profit will the price discriminating monopolist make?

  • Economics -

    see my post to jennifer (just below this post) for a good hint on how to solve this problem.

    Repost if you have questions.

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