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If the Firm in Question 44 Can Perfectly Price Discriminate

Question 46

Essay

If the firm in question 44 can perfectly price discriminate and each unit of output is infinitely divisible, what quantity would it produce and what would its profit (loss) situation then be?

Correct Answer:

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500 - 50Q = 100, 400 = 50Q, Q = 8, TR = ...

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