Refer to the Following Figure

question 50

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.
-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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