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pirex pirex
wrote...
Posts: 634
6 years ago
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?
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 89 times
1 Reply
And if you call, I will answer
And if you fall, I'll pick you up
And if you court this disaster
I'll point you home
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ChronosChronos
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Posts: 404
Rep: 2 0
6 years ago
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