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Question:
Discuss the pricing practices adopted by firms under different market structures.
OR
A firm produces a good, which is sold on delivery and in restaurants. The demand curve function for consumers on delivery and in restaurants are, respectively,
Delivery: Q1 = 250 - 10P1 Restaurants: Q2 = 500 - 25P2 The firm's total cost function (TC) is: TC = 200 + 5Q
Calculate the output and price in each market and profit of the firm:
(i) in the absence of price discrimination;
(ii) when there is price discrimination;
(iii) Under what conditions price discrimination can be practiced?
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