5. Trick or Treat Candy Company has lots of customers, some of whom have an inverse demand p(y) 160 – 10y while others have an inverse demand curve p (y) Hazel, does not know which customers are which...


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5. Trick or Treat Candy Company has lots of customers, some of whom have an inverse demand p(y)<br>160 – 10y while others have an inverse demand curve p (y)<br>Hazel, does not know which customers are which until they buy. She knows that her marginal costs<br>are constant at $25 per unit sold and that she would like to use quantity discounting. Is following price<br>scheme incentive-compatible? If a customer purchase more than 9.5 units the price per unit is $72.50;<br>otherwise, it is $92.50 per unit. Prove your assertion.<br>120 – 5y. Unfortunately, the owner,<br>

Extracted text: 5. Trick or Treat Candy Company has lots of customers, some of whom have an inverse demand p(y) 160 – 10y while others have an inverse demand curve p (y) Hazel, does not know which customers are which until they buy. She knows that her marginal costs are constant at $25 per unit sold and that she would like to use quantity discounting. Is following price scheme incentive-compatible? If a customer purchase more than 9.5 units the price per unit is $72.50; otherwise, it is $92.50 per unit. Prove your assertion. 120 – 5y. Unfortunately, the owner,

Jun 07, 2022
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