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Business, 28.02.2020 19:46 lizdeleon248

Suppose two brothers own identical skydiving companies but have decided to experiment with different pricing structures. The older brother’s company, Air Adventures, sets its prices using the profit-maximizing rule, while the younger brother’s company, Sky Warriors, sets its prices using a two-tiered, price-discrimination model. Assuming that both companies face the same market demand curves, marginal costs, and costs of production, and wield significant market power for their service area, which of the following is most likely to occur?

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