If a firm supplies separable markets with price elasticities $\eta$₁ and $\eta$₂,it should set prices P₁ and P₂ so that: A) P₁$\eta$₁ = P₂$\eta$₂. B) P₁ /$\eta$₁ = P₂ /$\eta$₂. C) P₁(1 + 1/$\eta$₁) = P₂ (1 + 1/$\eta$₂). D) P₁/(1 - 1 /$\eta$₁) = P₂ / (1 - 1/$\eta$₂). E) P₁ = 1 - 1/$\eta$₁ and P₂ = 1 - 1/$\eta$₂.

Question

Quizplus · Accepted Answer

The Answer of If a firm supplies separable markets with price elasticities $\eta$₁ and $\eta$₂,it should set prices P₁ and P₂ so that: A) P₁$\eta$₁ = P₂$\eta$₂. B) P₁ /$\eta$₁ = P₂ /$\eta$₂. C) P₁(1 + 1/$\eta$₁) = P₂ (1 + 1/$\eta$₂). D) P₁/(1 - 1 /$\eta$₁) = P₂ / (1 - 1/$\eta$₂). E) P₁ = 1 - 1/$\eta$₁ and P₂ = 1 - 1/$\eta$₂.

If a Firm Supplies Separable Markets with Price Elasticities η\etaη 1 And

If a Firm Supplies Separable Markets with Price Elasticities $\eta$ ₁ And