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You are the manager of a firm that charges customers $16 per unit

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3 You are the manager of a firm that charges customers $16 per unit for the first unit purchased, and $12 per unit for each additional units purchased in excess of one unit. The accompanying graph summarizes your relevant demand and cost.;a What is the economic term for your firm?s pricing strategy?;b Determine the profits you earn from this strategy?;c How much additional profit would you earn if you were able to perfectly price discriminate?

 

Paper#27863 | Written in 18-Jul-2015

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