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Amazon.com sells two tapes: Celebration of Song I and Celebration of Song II. Suppose two types of customers visit Amazon.com: A and B. There are
Amazon.com sells two tapes: Celebration of Song I and Celebration of Song II. Suppose two types of customers visit Amazon.com: A and B. There are 10 A customers and 15 B customers. A customers are willing to pay $15 for Celebration of Song I and $3 for Celebration of Song II. Type B customers are willing to pay $12 for Celebration of Song I and $8 for Celebration of Song II. Assume Amazon.com's marginal costs for Celebration of Song I and Celebration of Song II are constant at $2 (for each) and there are no fixed costs.
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