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Posted by on Sunday, February 21, 2010 at 10:05am.

A firm has production of cars in 2 countries with the following demand:
Sweden: P= 300- 5Q
Denmark: P= 150- 3Q
Marginal cost for both countries= $40 per unit

Will this company price discriminate, and if yes, which type of price discrimination
will it use? What are the conditions needed to price discriminate here?

Thanks and God bless

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