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

question 36

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 price charged in each market,if the marginal revenue [MR] from market A is 15 while the same from market B is 30.

• A)P_A = 200;P_B = 169.89
• B)P_A = 500;P_B = 208.29
• C)P_A = 105;P_B = 108.39
• D)P_A = 405;P_B = 138.89

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Definitions:

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.

Exchange

The act of trading goods, services, or currencies among parties.

Opportunity Cost

Forfeiting the immediately lesser choice has a cost attached when decisions are being made.

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