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There are two types of consumers 1 and 2 with demands:

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There are two types of consumers 1 and 2 with demands:
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a. without PD P1=P2= P total Q= (a- P)/b1 +( a-P)/b2 P= a- [b1b2/(b1+b2)]Q (1) TR=P*Q= (a- [b1b2/(b1+b2)]Q)*Q MR=a- [b1b2/(b1+b2)]2Q =MC is equilibrium Using this we get Q= (a-MC) *(b1+b2)/b1b2 Put...

This question was asked on Jan 21, 2013 and answered on Jan 22, 2013.

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