Consider the problem faced by the Butterfinger seller in Problem 3.
a. Assume that the seller is able to prevent resale between customers. In the real world, why is the seller still unlikely to be able to perfectly price discriminate?
b. Because of the reason you just indicated, the Butterfinger seller decides to segment her customers into two groups, each of which will be charged a different price. In order to maximize profit, should the seller sort by gender or by age?
c. Based on your answer to (b), determine who is in each group, and indicate (1) the price the seller should set for each group, (2) the total profit received by the seller, (3) total consumer surplus, and (4) the deadweight loss.
d. Is this pricing strategy (segmenting) more profitable to the seller than perfectly price discriminating? Is this pricing strategy more profitable than charging every consumer the same price?
e. What happens to consumer surplus and deadweight loss when a single-price monopolist begins segmenting in this way?