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    Managerial Economics Study Set 1
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    Exam 12: Direct Price Discrimination
  5. Question
    ​Dremel Tools Dremel Sells a High Speed Rotary Tool Appropriate for Many
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​Dremel Tools Dremel Sells a High Speed Rotary Tool Appropriate for Many

Question 76

Question 76

Essay

​Dremel Tools
Dremel sells a high speed rotary tool appropriate for many workshop projects.They have developed hundreds of accessories and bits for their tools for many different applications.Why is the markup on the accessories higher than the markup on the rotary tools?

Correct Answer:

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Dremel is engaging in a form of metering...

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