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La Bella Pizza can produce a pizza for a marginal cost of $6. Its price is a pizza for $20. (i) Could LaBella pizza make
La Bella Pizza can produce a pizza for a marginal cost of $6. Its price is a pizza for $20.(i)Could LaBella pizza make a larger economic profit by offering a second pizza for $5?(ii)Could La Bella Pizza make more money by offering a coupon that credits for $4? Should this coupon have an expiration date?(iii)Can discrimination by volume lead to a more efficient market solution? Please, explain.
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