The Following Table Shows the Marginal Revenues Earned by a Price

question 78

Multiple Choice

The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets. Table 10.5

-Refer to Table 10.5.How would a price-discriminating monopolist allocate his or her product between market X and market Y if marginal cost is $40 in both markets?

• A)4 units in market X; 1 unit in market Y
• B)3 units in market X; 2 units in market Y
• C)2 units in market X; 3 units in market Y
• D)Nothing in market X; 5 units in market Y
• E)5 units in market X; nothing in market Y

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