The next 5 questions refer to the following figure:The graph 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.
Â
1.       What total output should the firm produce?
Â
A.   275 units
B.  225 units
C.  175 units
D.   350 units
E.  100 units
Â
2.       How should the firm allocate sales between the two markets?
Â
A.   150 in each market
B.  100 in market 1, 175 in 2
C.  150 in market 1, 300 in 2
D.   112.5 in each market
E.  75 in market 1, 150 in 2
Â
3.       What price should the firm charge in each market?
Â
A. P1 = $20, P2 = $32.50 B. P1 = $35, P2 = $22.50 C. P1 = $20, P2 = $20
D. P1 = $27.50, P2 = $35
E. Impossible to say because market demand is not given
Â
4.       At the optimal price and quantity, what is demand elasticity in each market?
Â
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
Â
PLEASE SHOW THE SOLUTIONS!!!!!!! THANK U :)
Answers
Status NEW
Posted 17 May 2017 02:05 AM
My Price 7.00
-----------
Attachments
file 1494989062-Solutions file.docx preview (56 words )
S-----------olu-----------tio-----------ns -----------fil-----------e
-----------Hel-----------lo -----------Sir-----------/Ma-----------dam-----------
T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e.
-----------
H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;-----------
-----------Tha-----------nk -----------you-----------
-----------
Not Rated(0)