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Assume a monopolist can prevent resale of its product and it has complete information about each one of its customers. Even though each customer has a different demand curve, the seller can identify each customer's demand curve before a purchase takes place. It faces the inverse market demand of P = 160 - 10Q with marginal cost of MC = 10 + 5Q. Identify the type of price discrimination the monopolist should employ and complete this table:
Temporal Immediacy
The degree to which future benefits or consequences are perceived as being imminent or occurring in the near term.
Social Proximity
Refers to the closeness or distance between individuals in social relationships or networks.
Ethical Intensity
The degree of importance given to an ethical issue, determined by its outcomes, probability of effect, concentration of effect, and social consensus.
Ethics in Decision Making
Refers to considering moral principles and values when choosing among different courses of action.
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