There are two types of consumers in Melbourne: students and non-students. The student population is 10,...

 

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There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Q# = 1- p, for p <1. The non-student population is 40, and each non-student's demand of printing paper is QS = 3 - p, for p < 3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. 2.1. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full price, p. What are the profit maximizing price p and discount d? (5 points There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student's demand of printing paper is Q# = 1- p, for p <1. The non-student population is 40, and each non-student's demand of printing paper is QS = 3 - p, for p < 3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost. 2.1. Suppose OfficeMax offers a student discount, d, so students only pay d*p and non-students pay the full price, p. What are the profit maximizing price p and discount d? (5 points

Answer rating: 100% (QA)

Solution Each student s denand funetion is given by 31P or PC 1 At the Price of P 15 ... View the full answer