Question
Suppose that home gardeners and farmers both use the same herbicide. Home gardeners are willing to pay $4 for a one-liter spray bottle ($4 per
Suppose that home gardeners and farmers both use the same herbicide. Home gardeners are willing to pay $4 for a one-liter spray bottle ($4 per liter), whereas farmers are willing to pay $1,200 for a 200-liter barrel ($6 per liter).
In order to price-discriminate, the manufacturer should vertically integrate into farm retailers or Home Gardening Retailers
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Principles Of Microeconomics
Authors: N Gregory Mankiw
9th Edition
035713348X, 9780357133484
