Management Homework Help
Suppose a manufacturer creates a product with MC=18.The manufacturer sells the product both domestically and
Suppose a manufacturer creates a product with MC=18. The manufacturer sells the product both domestically and
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abroad. There is no difference in marginal cost and all conditions necessary to practice price discrimination have been met. The manufacturer is interest in maximizing profits by charging a higher price to consumers abroad.
Demand abroad (A) is characterized by the inverse demand curve P = 50 – 2Q.
Demand domestically (D) is characterized by the inverse demand curve P = 24.2 – 3Q.
What is the difference in prices between consumers abroad versus those at home ( P
