6. A dominant firm sells CPU at $5 with cost at $4. If a computer maker orders 1,000 units of them, it will enjoy 30% off discount. How much does the computer maker pay for 1,000 units of CPU if it enjoys the bundle discount? What is the range of cost that will support a new firm of CPU entering into the market?

6. A dominant firm sells CPU at $5 with cost at $4. If a computer maker orders 1,000 units of them, it will enjoy 30% off discount. How much does the computer maker pay for 1,000 units of CPU if it enjoys the bundle discount? What is the range of cost that will support a new firm of CPU entering into the market?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Monopoly

Section: Chapter Questions

Problem 1.2P

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