A firm markets its product to consumers in two distinct markets, M and N. In which circumstances would price discrimination across the two markets be most profitable for the firm?
- Aprice elasticity of demand in market M 1.2; price elasticity of demand in market N 1.2; geographical distance between markets M and N large
- Bprice elasticity of demand in market M 1.2; price elasticity of demand in market N 1.2; geographical distance between markets M and N small
- Cprice elasticity of demand in market M 1.8; price elasticity of demand in market N 1.2; geographical distance between markets M and N large
- Dprice elasticity of demand in market M 1.8; price elasticity of demand in market N 1.2; geographical distance between markets M and N small