The Following Graph Shows the Demands and Marginal Revenue in Two

question 15

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. What price should the firm charge in each market?

• A)P₁ = $20,P₂ = $32.50
• B)P₁ = $35,P₂ = $22.50
• C)P₁ = $20,P₂ = $20
• D)P₁ = $27.50,P₂ = $35
• E)Impossible to say because market demand is not given

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