A firm faces the demand curve q 20 ndash 08p and marginal, Business Economics

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A firm faces the demand curve q 20 ndash 08p and marginal

A firm faces the demand curve Q = 20 – 0.8P and marginal cost MC = 2.5Q.

a. If the firm cannot price-discriminate, what is the profit-maximizing price and quantity?

b. If the firm can practice perfect price discrimination, how many units will it sell?

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Business Economics: A firm faces the demand curve q 20 ndash 08p and marginal

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Business Economics: A firm faces the demand curve q 20 ndash 08p and marginal

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