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EasyTax markets both a deluxe and a standard version of its software. The deluxe version contains additional features that are likely to appeal to sophisticated

EasyTax markets both a deluxe and a standard version of its software. The deluxe version contains additional features that are likely to appeal to sophisticated users. The marginal costs of producing and distributing the two versions are virtually equal to zero, and the market is equally divided into two types of users, sophisticated and unsophisticated. The maximum willingness to pay for both types of users for the standard and deluxe versions are given in the following table

willingness to pay

user type standard deluxe

unsophisticated 20 20

sophisticated 35 100

Assume that the company cannot distinguish between the two types of user. What are the optimal prices for the two versions?

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