Task: A firm manufactures a product that is sold on two different markets (A and B) that have the following demand functions:
QA = 100 -0.50PA
QB = 60 -0.50PB
The firm has the following marginal cost function:
MC = 20 + 0.80Q
If the firm is engaging in price discrimination, what prices should be charged on each market and how many units should be sold on each market?