ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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3. You are an internet service provider and you have two types of customers, households and businesses. Business demand for your service is
qb = 6500 – 100p, and household demand is q, = 12500 – 500p. Your marginal cost is MC( + qh) = 20/3 + (g + Ih)/150. Calculate the
profit maximising prices you should charge the two goups under market segmentation (ie. third degree price discrimination).
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Transcribed Image Text:3. You are an internet service provider and you have two types of customers, households and businesses. Business demand for your service is qb = 6500 – 100p, and household demand is q, = 12500 – 500p. Your marginal cost is MC( + qh) = 20/3 + (g + Ih)/150. Calculate the profit maximising prices you should charge the two goups under market segmentation (ie. third degree price discrimination).
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