Refer to the Following Figure

question 39

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 rule do your answers to the previous two questions demonstrate for price determination for a firm that practices price discrimination?

• A) elasticity and price are not related
• B) price is lower in the higher elasticity market
• C) price is higher in the higher elasticity market
• D) profit is maximized when both prices and elasticities are equal
• E) none of the above

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Definitions:

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for diagnosis since it is closely related to the force and rate of the heartbeat and the diameter and elasticity of the arterial walls.

Immunization

The process by which an individual's immune system becomes fortified against an agent known as an antigen.

Susceptibility

The likelihood or tendency to be affected by a particular condition or event.

Infections

The invasion and multiplication of pathogenic microorganisms in the body, leading to diseases or illnesses.