In part (c) of Learning-By-Doing Exercise 12.3, we suggested that the profit-maximizing structure for the first and second blocks for Softco is something other than the pricing structure we determined in part (b), selling the first 60 units at a price of $40 apiece, and selling any quantity above 60 at $25 apiece. Find the structure that maximizes profit.
Exercise 12.3
Why must a firm prevent resale if it is to price discriminate successfully?