Question: consider a firm faced with the following pricing problem average...
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Consider a firm faced with the following pricing problem. Average economic costs (for production and marketing) are $55 at 20 units and $40 at 40 units. There are 40 consumers per period that are interested in its product. Half of them are fussy and want the product only at the beginning of each period even if they have to pay $50 per unit. The other half are price sensitive and would take the product at any time but will pay no more than $30 per unit. At what price should the firm sell its products?
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