In Table 23.1, we note that there are no restrictions on per-unit prices for the two consumer
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In Table 23.1, we note that there are no restrictions on per-unit prices for the two consumer types under either first or second degree price discrimination, with firms being able to tell consumer types apart in the former case but not the latter. Yet in Table 23.2, the firm appears to be charging exactly the same per-unit prices to the two consumers under first degree price discrimination when it can tell the consumers apart and different per-unit prices under second-degree price discrimination when the firm cannot tell the consumer types apart. Explain this intuitively.
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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