In recent years, U.S. car manufacturers have charged lower prices for cars in western states in an
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In recent years, U.S. car manufacturers have charged lower prices for cars in western states in an effort to offset the competition from Japanese cars. This twotier pricing scheme has upset many car dealers in the eastern states. Many have called it discriminatory and illegal. What conditions are necessary for this pricing scheme to be profitable to the U.S. companies?
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