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Suppose Cub Foods is offering BOGO (buy one get one free) deal on avocados. If you buy two avocados, you pay $4.

If you buy one, you pay $2 each.


Question please explain how this scheme is not a proper 2nd degree (volume) price discrimination scheme. How would you structure a proper 2nd degree (volume) PD scheme?

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The strategy is not a proper second degree price discrimination because it does not... View the full answer

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