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Problem 1A

Problem 1A. P. 100. 60. 20. 10. 25. Q. Problem 1.B. Problem 1.C. Problem 2. Problem 3.A. AC. P U. P C. Problem 3.B.

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Problem 1A

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  1. Problem 1A P 100 60 20 10 25 Q This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  2. Problem 1.B This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  3. Problem 1.C This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  4. Problem 2 This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  5. Problem 3.A AC PU PC This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  6. Problem 3.B • Since price advertising is likely to increase the fraction of informed consumers, it may have the effect of eliminating the profitability of the high price alternative. • The 1974 Canadian grocery price experiment suggested that publishing grocery prices each week in the newspapers did tend to bring down average prices. This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  7. Problem 4.A P Set unit price at MC= $10; Set the membership fee equal to consumer surplus = (100-10)90/2= $4,050 100 10 MC q 90 100 This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  8. Problem 4.B P 200 100 10 MC 90 100 200 q This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  9. Blank Slide This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

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