The company is planning to sell a paperback version of the new book "The Great Covid Panic: What Happened, Why, and What To Do Next" in two different countries: Sweden and Italy. The marketing analysis revealed that demand in this countries is different. The demand function for Sweden is Qs=10-0.2Ps, the demand function for Italy is Qi=6-0.2Pi. MC for both cases is 4 Euro. While price discrimination can clearly bring higher profits, there are some reasons to sell the book with the same price in both of the countries. What difference in profits the company can observe with and without implementation of the price discrimination strategy?

Answer rating: 100% (QA)

Price Discrimination vs Uniform Pricing for the Book Heres a breakdown of the profit difference betw... View the full answer