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Unformatted text preview: = 2( Q 1 + Q 2 ). From the second equation, Q 2 = 20  (1/2) Q 1 . Substitute for Q 2 in the first equation and solve to obtain Q 1 * = 10 and Q 2 * = 15. From the respective demand equations, P 1 * =$55 and P 2 * =$65. Q 1 Q 2 Q = Q 1 + Q 2 1 2 3 4 1 2 3 4 M C D 2 D 1 M R 2 M R 1 1 2 3 4 8 6 4 2 8 6 4 2 8 6 4 2 $ $ $ P 1 = 6. 5 Q 1 M R 1 = 6Q 1 P 2 = 8Q 2 M R 2 = 82 Q 2 M C = 2 Q = 2 ( Q 1 + Q 2 ) Q 1 * = 1 P 1 * = $ 5 5 Q 2 * = 1 5 P 2 * = $ 6 5 M R 1 = M R 2 = M C...
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 Summer '07
 Dr.ShomuBanerjee
 Economics, Microeconomics, MR2, Shomu Banerjee ECON, degree differential pricing

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