How does competition affect the use of menu pricing

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1. Suppose a firm can target two groups of consumers by a menu of prices with different qualities but that it can also offer different prices to different consumer groups. What should it do?

2. When does menu pricing dominate uniform pricing in monopoly? Discuss the countervailing effects.

3. How does competition affect the use of menu pricing? Discuss.

4. What are the effects of competition on quantity-based menu pricing?

Reference no: EM131282333

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