Question

In Figure, how will the profit realized by raising the price and reducing the entry fee be affected if Donald’s demand curve is only slightly greater than Martha’s (instead of twice as large, as shown in the graph)? In Figure, how will the profit realized by reducing the price and increasing the entry fee be affected if Donald’s demand curve is only slightly greater than Martha’s? What do these results suggest about how the profit- maximizing price and entry fee will vary in the two cases?



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  • CreatedNovember 14, 2014
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