Industrial Organizations, Business Economics

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Assume that there are two types of consumers (in equal numbers). They
have the following two inverse demand functions (coming from zero-income effect
demand functions):
Type A : p = 90- (qA/20)
TypeB : p = 60- (qB/30)
The Firm has the following cost function:
C(qA + qB) = 20(qA + qB);
Find the optimal prices and quantities for the following cases a monopolist may face:
a. No price discrimination (Firm can only select one price).
b. 3rd degree price discrimination (Firm can select one price per consumer type).
c. 3rd degree price discrimination with two-part pricing (Firm can select cover charge plus price per unit sold).

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