The Figure Given Below Shows the Demand Curves of Two

question 52

Multiple Choice

The figure given below shows the demand curves of two classes of buyers for tickets to a football match. Figure 24.4 D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
Refer to Figure 24.4.What price must be charged to both the groups to maximize profits?

• A)P₁
• B)P₂
• C)Group 1 must be charged P₁ and group 2 must be charged P₂.
• D)Group 1 must be charged P₂ and group 2 must be charged P₁.
• E)Both the groups must be charged a price that is equal to the marginal cost.

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Definitions:

Communal Ownership

A system where property and resources are owned collectively by a community or society rather than by individual members or companies.

Opportunity Cost

The price paid by not choosing the second-best option available during decision-making.

College

An institution of higher education offering undergraduate programs, sometimes along with graduate programs.

Tuition

The fee charged for instruction, typically at an educational institution like a university or college.