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You have the option to produce different versions of a product: high quality, or low quality. The marginal cost to produce the low quality version
You have the option to produce different versions of a product: high quality, or
low quality. The marginal cost to produce the low quality version is $5 and the marginal
cost to produce the high quality version is $25. There are two types of consumers Type
A and Type B with 100 consumers of each type. Each consumer will buy at most one
version of the product. These consumers have the following willingness to pay:
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