1. Tesla offers two battery packages: The 75kwh and the 60kwh. The only difference is how long the cars can go on a single charge.The manufacturing costs of the packages is identical; it is simply a minor programming change. The following table presents the value that each type of customer places on each type of battery pack (that is, Cruiser's place a value of $12400 on the 75kwh battery pack and $8600 on the 60kwh pack; whereas the Economizers place a value of $8700 on the 75kwh battery pack and $5600 on the 60kwh pack).

	Cruiser	Economizer
75kwh	$12400	$8700
60kwh	$8600	$5600

There are twice as many Cruisers as Ecomomizers. Tesla knows the distribution of values and number of each type of customer, but it can't tell them apart. Tesla must use second degree price discrimination. Each customer would buy a maximum of one Tesla.

What pricing strategy should Tesla follow to maximize profits? (8)