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Firms usually don't know the reservation price of every consumer,but sometimes reservation prices can be roughly identified.Here,six different prices are charged. The firm earns higher profits,but some consumers may also benefit.With a single price P*,there are fewer consumers.Firms usually don't know the reservation price of every consumer, but sometimes reservation prices can be roughly identified. Here, six different prices are charged. The firm earns higher profits, but some consumers may also benefit. With a single price P*4 , there are fewer consumers
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