Neco 2023 Economics Question 28
Practice objective / multiple choice question 28 from the 2023 Neco Economics examination.
A firm sells a product in two separate markets. In market A the inverse demand is \( P = 100 - 4Q_{A} \) and in market B it is \( P = 80 - 2Q_{B} \). The firm's marginal cost is constant at \( MC = 20 \). (i) Under third‑degree price discrimination, determine the profit‑maximising price and quantity for each market and the total profit. (ii) If the firm must charge a single uniform price to both markets, find the profit‑maximising uniform price, the total quantity sold and the resulting profit. (iii) Compute the percentage increase in profit when the firm is allowed to price‑discriminate. Give your answer to the nearest whole percent.
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About This Question
This is Neco 2023 Economics Question 28. It is one of the objective questions from the 2023 Neco Economics examination.
Difficulty level: Medium .
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