Suppose Kiwi Inc. conducted a market survey and found that the New Zealand wholesale market for chicken can be divided into two segments with the demand functions given by P1 = 12-6Q1 and P2 = 3-3Q2. If Kiwi Inc. are able to discriminate the price between these two market segments and resale is impossible between the two segments, what price should Kiwi Inc. charge for each market segment?

Answer rating: 100% (QA)

To determine the optimal prices for each market segment we need to maximize Kiwi Incs total profit T... View the full answer