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Industrial Organization: Markets and Strategies Paul Belleáamme and Martin Peitz published by Cambridge University Press Part II. Market power Exercises & Solutions
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Exercise 1 Monopoly with quality choice Consider a monopolist who sells batteries. Each battery works for h hours and then needs to be replaced. Therefore, if a consumer buys q batteries, he gets H = qh hours of operation. Assume that the demand for batteries can be derived from the preferences...
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