The graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price MRT, and marginal cost: Price and cost (dollars) 100 80 AS 60 40 20 0 100 200 300 MR1 400 MR2 MC 500 Quantity How should the firm allocate sales between the two markets? 600 D₁ 700 MRT 800 900 D2 1000 Q

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:
Price and cost (dollars)
100
80
60
AS
40
20
0
200
100
300
MR1
400
MR2
MC
500
Quantity
How should the firm allocate sales between the two markets?
600
D₁
700
MRT
800
900
D₂
1000
Q
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: Price and cost (dollars) 100 80 60 AS 40 20 0 200 100 300 MR1 400 MR2 MC 500 Quantity How should the firm allocate sales between the two markets? 600 D₁ 700 MRT 800 900 D₂ 1000 Q
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