The following graph shows the demands and marginal revenue in two markets,1 and 2,for a price discriminating firm along with total marginal revenue,MRT,and marginal cost. What price should the firm charge in each market?
A) P1 = $20,P2 = $32.50
B) P1 = $35,P2 = $22.50
C) P1 = $20,P2 = $20
D) P1 = $27.50,P2 = $35
E) Impossible to say because market demand is not given
Correct Answer:
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