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pirex pirex
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Posts: 634
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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 94 times
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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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#1
Posts: 404
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6 years ago
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pirex Author
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6 years ago
Thanks
Holly72492
wrote...

Yesterday
Helped a lot
jaray75
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2 hours ago
Good timing, thanks!
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