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At a student caf, there are equal numbers of two types of customers with the following values. The caf owner cannot distinguish between the two
At a student caf, there are equal numbers of two types of customers with the following values. The caf owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). The marginal cost of coffee is 5 and the marginal cost of a banana is 20 . The caf owner is considering three pricing strategies: Pricing strategy yields the highest profit for the caf owner
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