Question: Extend the two-period markdown model in Section 10.1.1 to three periods. That is, assume that the price-response function is d(p) 1,000 100p, marginal cost is

Extend the two-period markdown model in Section 10.1.1 to three periods. That is, assume that the price-response function is d(p) 1,000 100p, marginal cost is 0, and customers purchase as soon as price falls below their willingness to pay. What markdown management 261 three prices, p1, p2, and p3, will maximize total revenue? What if there are four periods and four prices? What is the general formula for n prices?

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