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Customers into the markets shown below

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Assume a firm with market power can segment its market in such a way that third-degree price discrimination is possible. Specifically, assume it can segment its customers into the markets shown below. Assuming it can only set a single price in each market, what prices should it set?

a. Market 1: $7.40; Market 2: $3.60

b. Market 1: $11.20; Market 2: $4.80

c. Market 1: $13.10; Market 2: $6.20

d. Market 1: $18.00; Market 2: $7.00

Reference no: EM131593535

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