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[Steps Shown] You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasticity of demand

Question: You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasticity of demand of Texans for a car wash is -2, while that of non-Texans is -1.5. Your marginal cost is $6.

Are the conditions necessary for price discrimination to be an effective means of enhancing profits being met? Explain.
What is the profit-maximizing price to charge a Texan for a car wash?
What is the profit-maximizing price to charge a Californian for a car wash?

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[Steps Shown] You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasticity of demand

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