Price Discrimination | |
| The Input Parameters | |
|
Price Elasticity of Demand (1) |
0.80 |
|
Price Elasticity of Demand (2) |
2.00 |
|
Fixed Costs (£) |
100.00 |
|
Variable Costs - 1 (£) |
4.00 |
|
Variable Costs - 2 (£) |
4.00 |
Output and price levels | |
|
With Price Discrimination for Market 1 | |
|
Quantity (Q) |
21.25 |
|
Price (£) |
183.00 |
|
Total Revenue (TR) |
3888.75 |
|
Total Cost (£) |
1821.25 |
|
Profit (£) |
2067.50 |
|
With Price Discrimination for Market 2 | |
|
Quantity (Q) |
17.00 |
|
Price (£) |
166.00 |
|
Total Revenue (TR) |
2822.00 |
|
Total Cost (£) |
1188.00 |
|
Profit (£) |
1634.00 |
|
With Price Discrimination - Total | |
|
Quantity (Q) |
38.25 |
|
Total Revenue (TR) |
6710.75 |
|
Total Cost (£) |
3009.25 |
|
Profit (£) |
3701.50 |
|
Without Price Discrimination | |
|
Quantity (Q) |
18.89 |
|
Price (£) |
173.56 |
|
Total Revenue (TR) |
3278.27 |
|
Total Cost (£) |
1451.60 |
|
Profit (£) |
1826.67 |