Use the following graph to answer the next 3 questions. The following graph shows the demand and marginal revenue in two markets (1 and 2) for a price-discriminating firm, along with its total marginal revenue and marginal cost. Price and cost (dollars) 50 50 40 40 30 20 20 10 $ D1 MR 1 MR 2 MC D2 22 MR total 0 50 100 150 200 250 300 350 400 450 500 Quantity Question 43 Using the above graph, what amount of total amount should the firm produce? a) 100 units b) 175 units c) 225 units d) 275 units e) 350 units Question 44 How should the firm allocate that sales output between the two mar- kets? a) 112.5 units in each market b) 100 units in market 1; 175 units in market 2 c) 150 units in market 1; 300 units in market 2 d) 75 units in market 1; 150 units in market 2 e) None of the above. Question 45 What price should the firm charge within each market? a) P₁ = $20; P₂ = $32.50 b) P₁ = $35; P₂ = $22.50 c) P₁ = $20; P2 = $20 d) P₁ = $27.50; P₂ = $35 e) None of the above.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Use the following graph to answer the next 3 questions.
The following graph shows the demand and marginal revenue in two markets
(1 and 2) for a price-discriminating firm, along with its total marginal revenue
and marginal cost.
Price and cost (dollars)
50
50
40
40
30
20
20
10
$
D1
MR 1
MR 2
MC
D2
22
MR total
0
50
100
150
200
250
300
350
400
450
500
Quantity
Question 43
Using the above graph, what amount of total amount should the firm
produce?
a) 100 units
b) 175 units
c) 225 units
d) 275 units
e) 350 units
Question 44
How should the firm allocate that sales output between the two mar-
kets?
a) 112.5 units in each market
b) 100 units in market 1; 175 units in market 2
c) 150 units in market 1; 300 units in market 2
d) 75 units in market 1; 150 units in market 2
e) None of the above.
Question 45
What price should the firm charge within each market?
a) P₁ = $20; P₂ = $32.50
b) P₁ = $35; P₂ = $22.50
c) P₁ = $20; P2 = $20
d) P₁ = $27.50; P₂ = $35
e) None of the above.
Transcribed Image Text:Use the following graph to answer the next 3 questions. The following graph shows the demand and marginal revenue in two markets (1 and 2) for a price-discriminating firm, along with its total marginal revenue and marginal cost. Price and cost (dollars) 50 50 40 40 30 20 20 10 $ D1 MR 1 MR 2 MC D2 22 MR total 0 50 100 150 200 250 300 350 400 450 500 Quantity Question 43 Using the above graph, what amount of total amount should the firm produce? a) 100 units b) 175 units c) 225 units d) 275 units e) 350 units Question 44 How should the firm allocate that sales output between the two mar- kets? a) 112.5 units in each market b) 100 units in market 1; 175 units in market 2 c) 150 units in market 1; 300 units in market 2 d) 75 units in market 1; 150 units in market 2 e) None of the above. Question 45 What price should the firm charge within each market? a) P₁ = $20; P₂ = $32.50 b) P₁ = $35; P₂ = $22.50 c) P₁ = $20; P2 = $20 d) P₁ = $27.50; P₂ = $35 e) None of the above.
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