Question
A firm has production of cars in 2 countries with the following demand:
Sweden: P= 300- 5Q
Denmark: P= 150- 3Q
Marginal cost for both countries= $40 per unit
Will this company price discriminate, and if yes, which type of price discrimination
will it use? What are the conditions needed to price discriminate here?
Thanks and God bless
Sweden: P= 300- 5Q
Denmark: P= 150- 3Q
Marginal cost for both countries= $40 per unit
Will this company price discriminate, and if yes, which type of price discrimination
will it use? What are the conditions needed to price discriminate here?
Thanks and God bless