Explain if the firm is engaging in price discrimination

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Reference no: EM1362382

A firm manufactures a product that is sold on two different markets (A and B) that have the following demand functions : (New Eds: p.321-337)

Q1 = 200 - 2P1 Q2 = 120 - 2P2

The firm has the following marginal cost function : MC = 10 + 0.20Q
If the firm is engaging in price discrimination , what prices should be charged on each market and how many units should be on each market?

Reference no: EM1362382

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