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Explain how this is a form of price discrimination and how the firm is able to extract more profits because of this system. 7) You are in charge of a large retail electronics store. There are currently 10,000 Sony LED TVs in the warehouse. You have been asked by the corporate office to devise a system of extracting the maximum profit per customer, while still selling the full inventory. The price that the store paid for each TV is $400. Assume the competition has the same cost per unit. You have no individual data on each consumers willingness to pay, so you must resort to other methods. Explain your strategy and why you believe it will work.
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