Analyze graphically the case of a two-plant firm that practices price discrimination in two sepa rate markets.

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Analyze graphically the case of a two-plant firm that practices price discrimination in two sepa¬ rate markets. Assume two sets of cost conditions and two demand situations, and show the fol¬ lowing:

(a) How the firm determines total output.

(b) Allocation of production to each plant.

(c) Allocation of output to each market.

(d) Prices in each of the two markets.

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Managerial Economics

ISBN: 9780135509302

3rd Edition

Authors: Evan J. Douglas

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