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OpenStudy (anonymous):

Suppose that all economics professors are identical. They all derive $600 worth of utility from owning a full working copy of the current year's version of Stata or $200 worth of utility from owning a student version with some features disabled. Students don't care at all about the extra features of the full version. At any price p for the student version, student demand at MIT is 300 - 2p units per year. Assume that Stata has no marginal cost of selling its software. If Stata sells the student version for p, what price will it choose for the full version? If there are forty economics facult

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