Question - Microsoft Company sold Windows Program (millions of copies) in the United States and Europe, and decided to apply pricing discrimination policy. The available information is:
Demand:
- United States: PU = 10 - QU
- Europe: PE = 8 - QE
Marginal cost constant in each market: MC = $2
Through the following procedures and using diagrams:
A - Compute the prices in each market which was applied.
B - Calculate the value of aggregate profit to the Microsoft Company.