Question: Suppose that in a two-period durable goods monopoly framework, the firm will rationally lower its price to $1 in period 2.Then, to induce a forward-looking

Suppose that in a two-period durable goods monopoly framework, the firm will rationally lower its price to $1 in period 2.Then, to induce a forward-looking high demand individual who values the good at $3 per period of consumption to purchase in period one.

How much can the firm charge at most a first-period price of _____ dollars?

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