Question
There are two markets, A and B. The firm maximizes its overall profit by practicing third-degree price discrimination. In the profit-maximizing equilibrium, demand elasticity is=
There are two markets, A and B. The firm maximizes its overall profit by practicing third-degree price discrimination. In the profit-maximizing equilibrium, demand elasticity is= 2 in market A and demand elasticity is= 3 in market B. If the price per unit in market B is $3, what is the price per unit in market A?
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Microeconomics Theory And Applications With Calculus
Authors: Jeffrey M. Perloff
4th Edition
134167384, 134167381, 978-0134167381
