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profits equal to the triangle B. The costs and benefits of such a move will determine if p is optimal (only the women are served) or if p* is (both markets are served).

(c) Given quantity X, we maximize consumer surplus by solving, q q

and letting X denote the Lagrange multiplier we get the FOCs p (q ) «■ X and m m

(a - q^} (a - q ) pw(qw) = X, which yield p (qm) Pw<<lm>> or> -§- = -s- • Together

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