Market A 



1. Sell total supply of 24 at 

 market price of $16 to 

 yield total revenue $384. 



PRICE 



Market B 



Differentiate market and 

 sell 14 in market A at $27 

 to yield total revenue $378; 

 also sell remaining 10 in 

 market B at $22 to yield 

 total revenue $220. The 

 total market revenue $598. 



SUPPLY 



Figure 1. Price discrimination between two markets by product differentiation and market 

 exchange control at no additional marketing cost. 



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