3rd Degree Price Discrimination 1* 3RD DEGREE PRICE DISCRIMINATION (You will use this info for this question AND the next 2 questions) You are the manager of a high-end (expensive) doggie bed company that has two markets (stores), one in a high-income part of town and one in a lower income part of town. You are going to engage in 3rd degree price discrimination (as we discussed in the videos). You have the following demand functions for each store, and the following marginal cost function (which, of course, is not affected by which store you sell your beds in). QD_MarketA = 96 - (1/2)*P QD_MarketB = 90 - P MC = 58 + .67*Q REMEMBER: .67Q is the same as (2/3)Q SOMETIMES FRACTIONS ARE EASIER THAN DECIMALS!!! AND, FOR EXAMPLE, 1.33Q is the same as (4/3)Q. Follow the procedure we went through in class and in the sample questions to answer this question and the following 2 questions. Which comes closest to the total quantity you sell across your two markets? Multiple Choice QTotal = 55 QTotal = 44 QTotal = 33 QTotal = 22