Practice Problem Second Degree Price Discrimination Menu Pricing

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Hi everyone, in this video I’m going to go through a problem which is centred around menu pricing.

0:00 Introduction & reading the question
1:13 Profit if the firm sells only the High-Quality option
4:02 Profit if the firm sells only the Low-Quality option
6:15 Profit if the firm creates a menu of High-Quality and the Low-Quality option


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