John Boone had lice. Tiny insects crawled through his hair. He was constantly scratching his scalp. Boone knew that there was an easy solution: He just had to buy a special shampoo at a pharmacy and wash the lice out. But Boone didn't have time for that. He had to price his bicycle. Boone, after graduating from Harvard, had invented a bicycle that was cheap to produce and worked just as well as much more expensive racing bikes. The secret was the frame: Boone had figured out how to make a strong bicycle frame out of a cardboard composite. Now, how much to charge for the bicycle? Boone's factory could produce the bicycle at a marginal cost of $1,000. Boone hired a consultant to run some focus groups. The consultant found that customers came in two groups: A and B. Each group had a different willingness to pay for the bicycle, and there were different numbers of consumers in each group, as listed in the table below: Group A B Willingness to Pay Number of Consumers $5,000 $3,000 10 2 Suppose consumers in either the US or Japan buy Boone's bicycles and then re-sell the product worldwide using eBay, an online auction site. Which consumers would be re-selling the bicycles, and which would be buying? How should Boone react to the possibility of online auctions?