Monopolistic market for a durable good


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Monopolistic market for a durable good 1 answer below ยป Assume that demand for services per period is Pt = 1000 – Qt where Qt is the stock of the durable consumed. Let the discount factor for consumers and the firm be given by d. Find the profit-maximizing prices and outputs for a durable goods monopolist with zero marginal costs when there are two periods for the following: (a) A monopolist who leases. (b) A monopolist who sells its output, but is able to commit to prices. (c) A monopolist sells who its output, but is not able to commit to prices. (d) What is the impact of a discount factor less than one? Why? Aug 06 2015 05:01 AM

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