A firm sells an identical product to two groups of consumers, A and B. The firm has decided that third-degree price discrimination is feasible and wishes to set prices that maximize profits

Which of the following best describes the price and output strategy that will maximize profits? A) PA = PB = MC.
B) MRA = MRB.
C) MRA = MRB = MC.
D) (MRA - MRB) = (1 - MC).

C

Economics

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