Refer to the Following Figure

question 43

Multiple Choice

Refer to the following figure:

The 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

Identify and analyze different types of misleading advertising and the legal frameworks designed to combat them.

Recognize the significance of the Central Hudson test in determining the constitutionality of restrictions on commercial speech.

Discern the difference between factual misrepresentations and puffery in advertising.

Comprehend the judicial rationale behind requiring warnings in direct-to-consumer advertising.