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Suppose a Single Asian seller of electric vehicles can distinguish between the American and Canadian markets for EVs. Assume the company finds the Canadian demand
Suppose a Single Asian seller of electric vehicles can distinguish between the American and Canadian markets for EVs. Assume the company finds the Canadian demand function to be given by Q=2000-4p, while the United States demand is given by Q=1600-20P. The automotive company's marginal cost (MC of supplying EVs equals 30. a) What would be the optimal price-quantity without price discrimination? b) What is the optimal price-quantity in each country with group price discrimination? c) Does price discrimination pay in this case?
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