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Lovely Lips spends an average of $1 on each tube of lipstick it manufacturers. If Samantha, Olga, Jolie, and Farah are willing to pay a
Lovely Lips spends an average of $1 on each tube of lipstick it manufacturers. If Samantha, Olga, Jolie, and Farah are willing to pay a maximum of $5, $6, $4, and $5, respectively, for a tube of Lovely Lips Fire Engine Red lipstick, and Lovely Lips is able to employ perfect price discrimination: the price of a tube of lipstick will be $4. the price of a tube of lipstick will be $5. it will maximize gains from trade. it will create a deadweight loss from lost consumer surplus
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