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Assume a manufacturing firm has identified two customer segments for its product. Demand curves for the two segments are d1 = 22,000 - 20p1 and
Assume a manufacturing firm has identified two customer segments for its product. Demand curves for the two segments are d1 = 22,000 - 20p1 and d2 = 22,000 - 35p2 respectively. Assume production cost is c = $140 per unit. What price should the firm charge each segment if its goal is to maximize profits? If the firm was to charge a single price over both segments, what should it be?
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