The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets. Table 10.5
Refer to Table 10.5.How would a price-discriminating monopolist allocate his or her product between market X and market Y if marginal cost is $40 in both markets?
A)4 units in market X;1 unit in market Y
B)3 units in market X;2 units in market Y
C)2 units in market X;3 units in market Y
D)Nothing in market X;5 units in market Y
E)5 units in market X;nothing in market Y

Question

The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets. Table 10.5
 Refer to Table 10.5.How would a price-discriminating monopolist allocate his or her product between market X and market Y if marginal cost is $40 in both markets?
A)4 units in market X;1 unit in market Y 
B)3 units in market X;2 units in market Y 
C)2 units in market X;3 units in market Y 
D)Nothing in market X;5 units in market Y 
E)5 units in market X;nothing in market Y

Quizplus · Accepted Answer

The Answer of The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets. Table 10.5
 Refer to Table 10.5.How would a price-discriminating monopolist allocate his or her product between market X and market Y if marginal cost is $40 in both markets?
A)4 units in market X;1 unit in market Y 
B)3 units in market X;2 units in market Y 
C)2 units in market X;3 units in market Y 
D)Nothing in market X;5 units in market Y 
E)5 units in market X;nothing in market Y

The Following Table Shows the Marginal Revenues Earned by a Price