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. How should the firm allocate sales between the two markets?
A) 150 in each market
B) 100 in market 1,175 in 2
C) 150 in market 1,300 in 2
D) 112.5 in each market
E) 75 in market 1,150 in 2
Correct Answer:
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