Suppose a Firm That Can Perfectly Price Discriminate Faces the Demand

question 22

Multiple Choice

Suppose a firm that can perfectly price discriminate faces the demand function P = 100 - q². The firm's total production costs are given by MC(q) = q + q². If the firm can perfectly price discriminate, the output level that maximizes profit for the firm is ____.

• A) 12.64
• B) 10.89
• C) 9.51
• D) 6.83

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