Consider the following data from three different firms (1, 2, and 3) each selling to two different customers (A and B). Shown are the price per unit charged each customer and the marginal cost of producing each unit for the customer. (Thus, for example, Firm 1 has different marginal costs between customers and charges different prices.)

Which firms are engaged in price discrimination? Explain. Extra credit: For each firm, rank-order the elasticity of demand of the two customers.

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Customer A Customer B Firm 1 Price ($) Marginal cost ($) 100 150 100 150 Firm 2 Price ($) 200 200 100 Marginal cost ($) 150 Firm 3 Price ($) Marginal cost ($) 150 200 100 100 88