The graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost: AS 100 80 40 0 100 Multiple Choice 200 200 500 Quantity How should the firm allocate sales between the two markets? M O 400 MR₂ Multiple Choice O MO O 600 0, 700 How should the firm allocate sales between the two markets? MRT D₂ 800 900 1000 150 in each market 250 in market 1, 200 in market 2 150 in market 1, 300 in market 2 200 in each market 300 in market 1, 100 in market 2

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue,
MRT, and marginal cost:
100
80
60
S
40
0
100 200 300 400
M
Multiple Choice
500
Quantity
How should the firm allocate sales between the two markets?
O
Multiple Choice
O
MM₂
O
MO
O
0₂
LLL
600
How should the firm allocate sales between the two markets?
O
MRT
700 600
150 in each market
D₂
I
900 1000
250 in market 1, 200 in market 2
150 in market 1, 300 in market 2
200 in each market
300 in market 1, 100 in market 2
Transcribed Image Text:The graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost: 100 80 60 S 40 0 100 200 300 400 M Multiple Choice 500 Quantity How should the firm allocate sales between the two markets? O Multiple Choice O MM₂ O MO O 0₂ LLL 600 How should the firm allocate sales between the two markets? O MRT 700 600 150 in each market D₂ I 900 1000 250 in market 1, 200 in market 2 150 in market 1, 300 in market 2 200 in each market 300 in market 1, 100 in market 2
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