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HP sells printers and ink cartridges, and faces two types of customers: Type 1: Valuation=5,000, uses 500 cartridges, 100 individuals Type 2: Valuation=8,000, uses 1000

HP sells printers and ink cartridges, and faces two types of customers: Type 1: Valuation=5,000, uses 500 cartridges, 100 individuals Type 2: Valuation=8,000, uses 1000 cartridges, 200 individuals And its costs for production of printer ("machine") and cartridges are given by MCm=1,000 and TFCm=250,000 MCc=2 and TFCc=0

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