Price discrimination- a firm with constant marginal cost, Ask an Expert

Management Studies

Price discrimination:-

A firm with constant marginal cost sells in two markets with demand functions

(a) Suppose the firm sets the same price in both markets, and selects that price to maximize the combined profit. How much will it sell?

(b) Suppose the firm sets separate prices in the two markets, each set to maximize profit in its corresponding market. How much in total will the firm sell?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M92004771

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