A retailer has identified two customer segments for its production capacity, one willing to place an order more than one week in advance and the other willing to pay a higher price as long as it can provide less than one week’s notice for production. The customer (A) who is unwilling to commit in advance has a demand curve da = 4500-12pa, customer (B) who is willing to commit in advance has a demand curve of dB=4500-30PB. Production cost is a $10 per unit. What price should the retailer charge customer A if its goal is to maximize profits? [2 points]
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