Show why optimal third-degree price discrimination requires that marginal revenue for each group of consumers equals marginal

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Show why optimal third-degree price discrimination requires that marginal revenue for each group of consumers equals marginal cost. Use this condition to explain how a firm should change its prices and total output if the demand curve for one group of consumers shifts outward, causing marginal revenue for that group to increase.
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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