Xerox sells both copiers and a toner for their copiers. While customers are not required to buy

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Xerox sells both copiers and a toner for their copiers. While customers are not required to buy Xerox toner, most do because specified machines use toner only for that machine. The Xerox toner and machines are closely designed and non-Xerox toner in Xerox machines produces inferior copies. Evaluate the statement: “Xerox makes 75 percent of its profits selling toner and 25 percent of its profits selling machines.”

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Managerial Economics and Organizational Architecture

ISBN: 978-0073375823

5th edition

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

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