The Following Graph Shows the Demands and Marginal Revenue in Two

question 51

Multiple Choice

The following graph shows the demands and marginal revenue in two markets,1 and 2,for a price discriminating firm along with total marginal revenue,MR_T,and marginal cost. At the optimal price and quantity,what is demand elasticity in each market?

• A)E₁ = -3.67,E₂ = -2.33
• B)E₁ = -3,E₂ = -4
• C)E₁ = -2.5,E₂ = -3.5
• D)E₁ = -3,E₂ = -3
• E)E₁ = -1.67,E₂ = -2.33

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Unequal Treatment

The unfair and differential treatment of individuals or groups based on characteristics such as race, gender, age, or social status, often leading to discrimination and prejudice.

Racial Group

A social category of people who share distinct physical or genetic traits deemed significant by society.

Affirmative Action

Policies and practices within a society aimed at increasing opportunities for historically marginalized groups by favoring them in areas like education and employment.