Question
A firm in the transportation industry with costs C(Q) = 1,000 + 60Q + 0.1Q 2 is able to price discriminate between two group of
A firm in the transportation industry with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price discriminate between two group of customers, with demand functions for each group
Q1 = 3,000 - 2p
Q2 = 350 - 0.5p
How much does it sell to each group, at what price, and how much does the profit from each group
What would happen if the authorities forced the company to charge all its customers the same price?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
