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The Amount of the Asset Reserved for the Higher Price

Question 42

Multiple Choice

The amount of the asset reserved for the higher price segment is such that


A) all orders from the lower priced segment will be accepted and filled.
B) the expected marginal revenue from the higher priced segment is more than the price to the lower price segment.
C) the expected marginal revenue from the higher priced segment is less than the price to the lower price segment.
D) the expected marginal revenue from the higher priced segment equals the price to the lower price segment.

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