If a Firm Supplies Separable Markets with Price Elasticities $\eta$ ₁ And

question 17

Multiple Choice

If a firm supplies separable markets with price elasticities $\eta$ ₁ and $\eta$ ₂,it should set prices P₁ and P₂ so that:

• A) P₁\(\eta\)₁ = P₂\(\eta\)₂.
• B) P₁ /\(\eta\)₁ = P₂ /\(\eta\)₂.
• C) P₁(1 + 1/\(\eta\)₁) = P₂ (1 + 1/\(\eta\)₂).
• D) P₁/(1 - 1 /\(\eta\)₁) = P₂ / (1 - 1/\(\eta\)₂).
• E) P₁ = 1 - 1/\(\eta\)₁ and P₂ = 1 - 1/\(\eta\)₂.

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