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Answer to Question #59974 in Microeconomics for Belal Abdo
Question #59974
Justo & Company use third-degree price discrimination in selling its product. The demand
equations for the two markets are as follows:
Market 1 P1 = 2.46 - 0.2Q1
Market 2 P2 = 4.54 - 0.8Q2
The marginal cost is $1.20
a. Determine the profit maximizing price and quantity in each market.
equations for the two markets are as follows:
Market 1 P1 = 2.46 - 0.2Q1
Market 2 P2 = 4.54 - 0.8Q2
The marginal cost is $1.20
a. Determine the profit maximizing price and quantity in each market.
Expert's answer
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