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Satsume Satsume
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6 years ago
A firm sells an identical product to two groups of consumers, A and B.  The firm has decided that third-degree price discrimination is feasible and wishes to set prices that maximize profits.  Which of the following best describes the price and output strategy that will maximize profits?
A) PA = PB = MC.
B) MRA = MRB.
C) MRA = MRB = MC.
D) (MRA - MRB) = (1 - MC).
Textbook 
Microeconomics

Microeconomics


Edition: 8th
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