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The Following Graph Shows the Demands and Marginal Revenue in Two

Question 21

Multiple Choice

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. 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,MR<sub>T</sub>,and marginal cost.   What price should the firm charge in each market? A) P<sub>1</sub> = $20,P<sub>2</sub> = $32.50 B) P<sub>1</sub> = $35,P<sub>2</sub> = $22.50 C) P<sub>1</sub> = $20,P<sub>2</sub> = $20 D) P<sub>1</sub> = $27.50,P<sub>2</sub> = $35 E) Impossible to say because market demand is not given 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

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