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Linda and Alberto consume the same product. They have the following demand curves for this product: Q Linda = 500 - 10 P Q Alberto
Linda and Alberto consume the same product. They have the following demand curves for this product:
QLinda= 500 - 10 P
QAlberto= 500 - 20 P
The marginal cost (MC) for the firm is $10.
- Calculate the prices when the firm discriminates between the two consumers. (15 points)
- Is this a good strategy, or should the firm charge the same price to both of them?(10 points)
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