Consider a Monopolist Selling Her Output in Two Markets,A and B.The

question 76

Multiple Choice

Consider a monopolist selling her output in two markets,A and B.The price elasticity of demand in market A is 1.5,while the same in market B is 2.5.Calculate the marginal revenue [MR] from each market,if the monopolist charges $300 for the product in both the markets.

• A)MR_A = 13.3;MR_B = 24.8
• B)MR_A = 6.11;MR_B = 35.8
• C)MR_A = 11.11;MR_B = 64.8
• D)MR_A = 15.3;MR_B = 74.8

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Definitions:

Amylase

An enzyme produced primarily in the pancreas and salivary glands that helps in the breakdown of carbohydrates into sugars.

Pepsinogen

Pepsinogen is an inactive precursor of pepsin, a digestive enzyme produced in the stomach that is activated by stomach acid to break down proteins in food.

Hydrochloric Acid

A strong, corrosive acid consisting of hydrogen and chlorine, notably present in gastric juice.

Amino Acids

The building blocks of proteins, consisting of a basic amino group, an acidic carboxyl group, and a unique side chain, crucial for numerous bodily functions.