Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Imagine there are only two kinds of milk consumers in Quebec. For one kind consumer,
if they purchase q liters of milk at cost π they get utility 13√q − π.
For the other kind, if they purchase q liters of milk at cost π they get utilty 24√q − π.
What is the optimal selling plan for the milk monopoly? They must choose both the
package sizes and payments.
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