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Discuss how the choice between second-degree and third-degree price discrimination could affect a company's product line design. (a) What is the profit comparison between the
Discuss how the choice between second-degree and third-degree price discrimination could affect a company's product line design. (a) What is the profit comparison between the two types of price discrimination? [10 marks] (b) Do you always observe a company choose the type of price discrimination with superior predicted profits in the models learned in the lectures? If not, explain why the observation could differ from some theoretical predictions in the lectures. [10 marks]
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