Question: (10 marks). Explain why a durable goods monopolist may prefer to lease rather than sell. Explain whether profitable leasing raises of lowers welfare. Illustrate your

(10 marks). Explain why a durable goods monopolist may prefer to

(10 marks). Explain why a durable goods monopolist may prefer to lease rather than sell. Explain whether profitable leasing raises of lowers welfare. Illustrate your answer by solving the durable goods example done in class for the following numerical values. To illustrate your answer you will need to choose x appropriately. Explain your choice of x. Durable goods monopoly Example No discounting (R=1), One Buyer of each type

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