12.16. Consider Problem 12.14 with the following change. Suppose the demand for the drug in Europe becomes
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12.16. Consider Problem 12.14 with the following change. Suppose the demand for the drug in Europe becomes QE ! 55 " 0.5PE. Will third-degree price discrimination increase the firm’s profits?
12.17. Think about the problem that Acme faces in Problem 12.14. Consider any demand curves for the drug in Europe and in the United States. Will its profits ever be lower with third-degree price discrimination than they would be if price discrimination were impossible?
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