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In year 2040, there is a potential for creating an industry for .ying cars. Flying cars can be produced in two di.erent varieties: a modern

In year 2040, there is a potential for creating an industry for .ying cars.

Flying cars can be produced in two di.erent varieties: a modern design version

(MD) or a generic luxury version (GL). Market research indicates that there

are 200,000 potential customers and they are equally divided among two types

which we call classical (C) and modern (M). Customers are willing to buy at

most one .ying car. The reservation price (maximum price a consumer is willing

to pay) for one car of each variety for each customer type is in the table below:

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