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After graduating from Kellogg you are hired by Walgreens and put in charge of pricing the firm's private-label generic medication. You start on the over-the-counter

After graduating from Kellogg you are hired by Walgreens and put in charge of pricing the firm's private-label generic medication. You start on the over-the-counter cold and pain-reliever market in the Midwestern United States. Type A customers, who have a cold, typically need two remedies: a decongestant and a pain reliever. Type B customers, with a headache but little stuffiness, place a high value on the pain reliever, while type C customers, with a stuffy nose, value the decongestant most. There are approximately 1 million customers of each type per year (they only consider purchasing the store-brand medication). After some market research you find the following willingness-to-pay from the different customer types.

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