The Following Graph Shows the Demands and Marginal Revenue in Two

question 49

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,MR_T,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

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Definitions:

GDP Deflator

A metric for assessing the price rates of all freshly created, domestic final goods and services in an economy.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in real terms.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of foreign trade on an economy's GDP.

National Income

National Income is the total value of all goods and services produced by a country over a specific period, reflecting the economic strength and standard of living in the country.