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Consider the car manufacturer Toyota. The firm offers two brands, Toyota and Lexus, with similar models. Assume the following willingness to pay for two car

Consider the car manufacturer Toyota. The firm offers two brands, Toyota and Lexus, with similar models. Assume the following willingness to pay for two car models: What if Toyota charges $25,000 for the Camry and $39,000 for the Lexus ES? Is this pricing scheme incentive compatible? If not, assuming the prices for Camry's are fixed, what should the price of Lexus be?

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