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Other Fields Homework Help Economics Topic started by: pirex on Oct 18, 2017



Title: A weapons producer sells guns to two countries that are at war with each other. The guns can be ...
Post by: pirex on Oct 18, 2017
A weapons producer sells guns to two countries that are at war with each other. The guns can be produced at a constant marginal cost of $10. The demand for guns from the two countries can be represented as:

QA = 100 - 2p
QB = 80 - 4p

Why is the weapons producer able to price discriminate?
What price will it charge to each country?


Title: Re: A weapons producer sells guns to two countries that are at war with each other. The guns can be ...
Post by: Chronos on Oct 18, 2017
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