Wobble's Weebles is the only producer of weebles. It makes weebles at constant marginal cost c(where c 0) and sells them at a price of p₁ per weeble in market 1 and at a price of p₂ per weeble in market 2. The demand curve for weebles in market 1 has a constant price elasticity of demand equal to -2. The demand curve for weebles in market 2 has a constant price elasticity equal to - . The ratio of the profit-maximizing price in market 1 to the profit-maximizing price in market 2 is A) 2/3 B) 1/3 C) 3/2 D) 3 E) dependent on the value of

Question

Wobble's Weebles is the only producer of weebles. It makes weebles at constant marginal cost c(where c > 0) and sells them at a price of p₁ per weeble in market 1 and at a price of p₂ per weeble in market 2. The demand curve for weebles in market 1 has a constant price elasticity of demand equal to -2. The demand curve for weebles in market 2 has a constant price elasticity equal to - . The ratio of the profit-maximizing price in market 1 to the profit-maximizing price in market 2 is A) 2/3 B) 1/3 C) 3/2 D) 3 E) dependent on the value of

Quizplus · Accepted Answer

The Answer of Wobble's Weebles is the only producer of weebles. It makes weebles at constant marginal cost c(where c > 0) and sells them at a price of p₁ per weeble in market 1 and at a price of p₂ per weeble in market 2. The demand curve for weebles in market 1 has a constant price elasticity of demand equal to -2. The demand curve for weebles in market 2 has a constant price elasticity equal to - . The ratio of the profit-maximizing price in market 1 to the profit-maximizing price in market 2 is A) 2/3 B) 1/3 C) 3/2 D) 3 E) dependent on the value of

Wobble's Weebles Is the Only Producer of Weebles