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Firm Y's product has demand from two distinct groups of consumers. Group A's demand is given by: P = 50 - 0.25Q and Group B's
Firm Y's product has demand from two distinct groups of consumers. Group A's demand is given by: P = 50 - 0.25Q and Group B's demand is given by: P = 50-Q. The constant marginal cost for the firm is 10. Assume that the firm is able to price discriminate between the two groups. What is the difference between the producer surplus when the firm price discriminates and when the firm charges a single uniform price to both groups
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