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Compute the prices in each market which was applied

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Question - Microsoft Company sold Windows Program (millions of copies) in the United States and Europe, and decided to apply pricing discrimination policy. The available information is:

 Demand:

  • United States: PU = 10 - QU
  • Europe: PE = 8 - QE

 Marginal cost constant in each market: MC = $2

Through the following procedures and using diagrams:

A - Compute the prices in each market which was applied.

B - Calculate the value of aggregate profit to the Microsoft Company.

Reference no: EM131744924

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