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Question No. 1 A profit maximizing firm produces two products: X and Y. The firm has no costs. There are three types of
Posted: Thu May 19, 2022 8:02 am
by answerhappygod
- Question No 1 A Profit Maximizing Firm Produces Two Products X And Y The Firm Has No Costs There Are Three Types Of 1 (101.84 KiB) Viewed 46 times
Question No. 1 A profit maximizing firm produces two products: X and Y. The firm has no costs. There are three types of customers: 20 customers of type I, 20 customers of type 2 and 10 customers of type 3. Each customer is willing to purchase at most one unit of eac of the two products. The firm cannot price discriminate between the customers. The following table presents the willingness to pay by each of the three types customers for each of the two products: BUNDLE Y X 40 200 Type 1 200 40 120 Type 2 Type 3 120 What will be the price of each product, if the firm decides to sell them separately? -ill be the firm's profit in this case? pose, instead, that the firm decides to sell the two products only in a bundle. e will the firm choose for that bundle? What will be its profit?