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Llanis Llanis
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6 years ago
Suppose two countries, A and B, are at war with each other. Country A is very wealthy; country B is very poor. The XYZ Co. produces tanks. Is XYZ able to set a different price for the tank sold to country A than the price for the tank sold to country B? Explain.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
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6 years ago
XYZ can practice multimarket price discrimination. There are two identifiable segments with different elasticities. Since the two countries are at war, resale is doubtful.
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