Question

There is a hotel in Imatra (Finland) which is very close to Russian border. The demand...

There is a hotel in Imatra (Finland) which is very close to Russian border. The demand function of Finnish consumers for this hotel is Q = 1000 - P. The demand function of Russian consumers for this hotel would be Q = 2000 - P if they had not travel to Imatra, but they have to travel and cost of travelling is 200. MC of hotel is 100 for one visitor. Find the difference of profits with price discrimination and without price discrimination.

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