Consider a company with market power that sells its product to two distinct consumer groups (type 1 consumers and type 2 consumers). Graphically illustrate the following situation: "if you charge a single price only consumers of type 1 will be able to buy the product but, if you charge differentiated prices, the two types of consumers will be able to buy it"

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Chapter6: Simple Pricing
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Exercise A.5

Consider a company with market power that sells its product to two distinct consumer groups (type 1 consumers and type 2 consumers). Graphically illustrate the following situation: "if you charge a single price only consumers of type 1 will be able to buy the product but, if you charge differentiated prices, the two types of consumers will be able to buy it"

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