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A seller engages in price discrimination by market segment. Local resident customers have a price elasticity of demand E = -2, while other customers have

A seller engages in price discrimination by market segment. Local resident customers have a price elasticity of demand E = -2, while other customers have a price elasticity of demand E = -6. The MC of selling to both groups is the same and constant at $20. Therefore:

local residents will pay P=$30, while other customers will pay $24.

local residents will pay P=$40, while other customers will pay $60.

local residents will pay P=$40, while other customers will pay $24.

local residents will pay P=$30, while other customers will pay $60.

all customers will pay $20.

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