Network effects

Do Problem set 1 and then the mandatory essay question. In the first problem set Question 1iv, you must think about how the company will react to that situation and see if you can determine how it will maximise profits then. the profit maximisation theory is the same one you apply in earlier sections but you should find a new way to solve it mathematically. I uploaded a core reading on price discrimination and at the end of page 6 there is apparently a colossal clue in what is expected from us regarding question 1iv. The correct answer might have a lot of decimal places. I have also included lecture slides which are vital to the assignment.

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