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Can discrimination by volume lead to a more efficient market

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Reference no: EM132360312

Mario's can produce a pizza for a marginal cost of $6. Its price is a pizza for $20. (a) Could Mario's pizza make a larger economic profit by offering a second pizza for $5? (b) Could Mario's Pizza make more money by offering a coupon that credits for $4? Should this coupon have an expiration date? (c)Can discrimination by volume lead to a more efficient market solution?

Reference no: EM132360312

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