Question

Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.)

Make sure you include the profit with and without price discrimination in your answer.

Answer 1

Here firm is confronting 2 entirely unexpected markets. Firm has 2 decisions, first, charging same worth in every market and second, charging entirely unexpected expenses from each market. On the off chance that snap of requests square measure differed in 2 separate markets, at that point it's productive to practice worth segregations. Firm should charge higher worth wherever request is dead.

By charging separate expenses in every market, benefit of firm is expanded than situation wherever firm charge single worth.

In this way, if firm wants to boost its benefit, it ought to settle on worth segregations.