You have created a new printer that costs MC = 20 to produce. There are two potential customers: C1 and C2. Suppose C1's reservation price for the printer is $105 and C2's reservation price is $70.

A. You are setting a single price for the printer ? what price will maximize your profit? Who buys at that price and what is your profit?

B. Suppose that you can add a part to the printer to slow down its performance. The resulting "basic" printer is slightly more expensive to produce because of the extra part. And it's performance is lower than the original "premium" model. The lower performance also makes the basic printer less attractive to both customers. The table below summarizes cost and demand for both printers: