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PaulKet PaulKet
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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: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
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The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
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RumkoRumko
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6 years ago
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