Question

Complete the last three columns in the previous table by determining the profit-maximizing price, the quantity sold at that pGiocattolo is an Italian firm, and it is the only seller of toy cars in Italy and Spain. Suppose that when the price of toy c

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Answer #1

Under single price = 18

Haly PRICE (Dollars per toy car) PRICE (Dollars per toy car) MC ATC MC ATC MR. MRS DE + 0 D 0 2 2 2 6 8 10 12 14 16 18 QUANTI

Under price discrimination, set MC=MR

Country Price Quantity Profit Price Quantity Profit
Italy 18 11 110 24 8 128
Spain 18 6 60 16 8 64
Total 170 192

Blank - lower

False

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