Suppose two countries,A and B,are at war with each other.Country A is very wealthy; country B is very poor.The XYZ Co.produces tanks.Is XYZ able to set a different price for the tank sold to country A than the price for the tank sold to country B? Explain.

Question

Quizplus · Accepted Answer

The Answer is XYZ can practice multimarket price discrimination.There are two identifiable segments with different elasticities.Since the two countries are at war,resale is doubtful.

Suppose Two Countries,A and B,are at War with Each Other