A firm manufactures a product that is sold on two different markets (A and B) that have the following demand functions:Q_A = 200 - 2P_AQ_B = 240 - 2P_BThe firm has the following marginal cost function:MC = 20 + 2QIf the firm is engaging in price discrimination, how many units should be sold in each market to maximize profits? What prices should the firm charge in each market?

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The Answer of A firm manufactures a product that is sold on two different markets (A and B) that have the following demand functions:Q_A = 200 - 2P_AQ_B = 240 - 2P_BThe firm has the following marginal cost function:MC = 20 + 2QIf the firm is engaging in price discrimination, how many units should be sold in each market to maximize profits? What prices should the firm charge in each market?

A Firm Manufactures a Product That Is Sold on Two