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4. (10 points) There are a number of cases in which a firm that wishes to price discriminate produces two varieties of a particular product,

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4. (10 points) There are a number of cases in which a firm that wishes to price discriminate produces two varieties of a particular product, one of which is an intentionally damaged version of the other. One example is a company that has a 16 page per minute printer and an 8 page per minute printer. The 8 page per minute printer is identical to the 16 page per minute printer, except that its printing engine's algorithm alternates between a cycle that actually prints a page and a dummy cycle that does nothing. Another example is a computer chip that is available with or without a math coprocessor. The company actually produces only one type of chip and then destroys the coprocessor on the chips that they sell as the lowerend chip. Why would a company pursuing such a strategy conclude that it is necessary to physically damage one version of the good

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