Answer to Question #215366 in Microeconomics for Lebo

Question

Suppose that country A has high infection rates, determine the price that eureka bio can charge country A and B to prevent a resale between countries.

Answer 1

The various market segments must be isolated in some way from one another to prevent customers who are offered a lower price from selling to customers who are charged a higher price. If consumers can easily resell a product, then discrimination is unlikely to be successful. This will be the best approach for Eureka bio to control resale of its vaccine