Suppose a firm starts off with selling a uniform product to two different customers at the same

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Suppose a firm starts off with selling a uniform product to two different customers at the same price per unit for each. Now it decides to engage in price discrimination by raising the price to one customer and lowering the price to the other customer. Why doesn’t the profit lost due to lowering the price for one customer eliminate all of the higher profits achieved by raising the price to the other customer?

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The Economics of Public Issues

ISBN: 978-0134018973

19th edition

Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North

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