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The software company can offer two versions of its software: Basic and Advanced. Reservation prices of two groups of consumers are in the table. MC = 0. Find prices and profits for the next strategies.

a. One price for all:

b. Observation strategy:

c. Versioning:

d. How the marginal cost should change to change the best strategy?

e. How the number of consumers should change to change the best strategy?


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