[6] Imagine a firm engaged in third degree price discrimination sells its product to consumers in two states, California

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6 Imagine A Firm Engaged In Third Degree Price Discrimination Sells Its Product To Consumers In Two States California 1 (128.83 KiB) Viewed 31 times

[6] Imagine a firm engaged in third degree price discrimination sells its product to consumers in two states, California and Florida. At the profit-maximizing quantities for California and Florida, the firm estimates the price elasticity of demand for its product in California is 4, while in Nevada the price elasticity is 2. Accordingly, the firm will charge a higher price to consumers in California. True False B. [7] Continuing question (6), at the profit-maximizing quantities for California and Florida we know: 02 ರ > ಹ > the marginal revenue in California exceeds the marginal revenue in Florida the marginal revenue in Florida exceeds the marginal revenue in California the marginal revenues in California and Florida equal each other unable to determine, since not enough information is provided C. D.