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Consider the market of some good with a unique firm in it. In this market there are only two consumers, one of low valuation and

Consider the market of some good with a unique firm in it. In this market there are only two consumers, one of low valuation and one with high valuation. The firm is able to perfectly distinguish between them. Each consumer's gross consumer surplus is given by the following expression: U(i , qi) = i aq1 q 2 i 2

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