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Business, 12.12.2019 01:31 LoserMcBadface

Trick or treat candy company has lots of customers, some of whom have an inverse demand of p = 160 – 10q, while others have an inverse demand curve of p = 120 – 5q. unfortunately, the owner, hazel, does not know which customers are which until they buy. she knows that her marginal costs are constant at $25 and that she would like to use quantity discounting. is this price scheme incentive-compatible? if more than 9.5 units are purchased, the price per unit will be $72.50; otherwise, $92.50 per unit.

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