Discussion help Price discrimination
Please advice with altercation alone 2-3 paragraphs
I appetite to allegorize the argumentation abaft some actual accepted anatomy of amount bigotry (which one? ) - so let's break a very-very-simple appraisement problem.
Suppose that a fast-food restaurant is aggravating to amount out how to amount 2 items on their menu: burgers and fries. Suppose further, that the barter of this restaurant appear in 2 types/segments:
-Segment A: the chump in this articulation is accommodating to pay at best $2 for a burger and at best $1 for a allocation of fries.
-Segment B: they're the exact opposite, the chump in this articulation is accommodating to pay at best $1 for a burger and at best $2 for a allocation of fries.
The segments accept according sizes - to accumulate it simple, accept we accept 50 barter in Articulation A and 50 barter in Articulation B.
Question: What is the acquirement maximizing appraisement arrangement for these items? how should the restaurant amount them?
(The costs of anniversary account are not actual accordant for this botheration so we'll attending at acquirement instead of profit. The aforementioned abstraction holds if we appetite to accommodate costs and attending at profits instead - but the calculations would be a bit added complicated, "clouding" the capital point).
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