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Author Question: Suppose all individuals are identical, and their monthly demand for Internet access from a certain ... (Read 120 times)

mydiamond

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Question 1

Stores such as Costco and Sam's Club require an annual membership before you can shop there. This is a form of
◦ two-part pricing.
◦ price gouging.
◦ tie-in sales.
◦ anti-competitive behavior.

Question 2

Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. Potential consumer surplus equals
◦ $4.
◦ $8.
◦ $16.
◦ $32.


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Marked as best answer by mydiamond on Mar 14, 2021

macagnavarro

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mydiamond

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Reply 2 on: Mar 14, 2021
YES! Correct, THANKS for helping me on my review


ASDFGJLO

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  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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