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Two distinct market segments

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Reference no: EM132265838

1) Firm C has identified two distinct market segments. The demand curves for segments are given by:

PA = 30 000 - 50QA

PB = 25 000 - 70QB

a) What is the optimal pricing policy for this firm if the firm's MC is 10,000 dollars per unit produced?

b) What will be the optimal pricing policy for this firm if it cannot distinguish the two market segments?

In which case the firm is able to obtain a higher profit? Why?

Reference no: EM132265838

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