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Suppose that you can choose a fixed price for everyone, but you can offer a discount to the first few buyers. For example, you could
Suppose that you can choose a fixed price for everyone, but you can offer a discount to the first few buyers. For example, you could set a price of $15 but offer a $5 discount to the first buyer. Note: Under a publicly posted pricing policy (here, the discount), people with the highest willingness to pay (WTP) will buy first. Hint: To set up the discount strategy, make sure that the price you charge net of the discount is no more than the WTP of the first several people who buy. Question 3 4 Points Which of these discount strategies will maximize the profit? Fixed price of $12 and a discount of $1 to first 2 buyers Fixed price of $27 and a discount of $16 to first 2 buyers Fixed price of $32 and a discount of $21 to first 3 buyer Fixed price of $35 and a discount of $24 to first 4 buyers
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