A firm practicing group price discrimination across two countries sets MR = common MC and therefore
A)price will be the same in both countries.
B)price will be twice MR.
C)profit will be the same in both countries.
D)price will likely be different in each country.

Question

Quizplus · Accepted Answer

Since the firm is practicing price discrimination, it is charging different prices in each country. However, it still sets MR (=common MC) for each country, which means that it is still maximizing profits in each market separately. Therefore, price is likely to be different in each country.

A Firm Practicing Group Price Discrimination Across Two Countries Sets