Question
The following shows the demands and marginal revenue in two markets (Dl and MRI, and D2 and NIR2) for a price discriminating firm along
The following shows the demands and marginal revenue in two markets (Dl and MRI, and D2 and NIR2) for a price discriminating firm along with total demand, DT, marginal revenue, MRT, and marginal cost MC. 350 MRT MRI l. MC 100 200 300 400 MRI 500 600 700 800 900 1000 1100 1200 1300 1400 As with the PPT slides, you can view the data generating these for reference, Dl =310 0.2Q D2=450 0.2Q MRT 380 0.2Q DT 380 0.1Q MC - O.0005QA2 - 0.55Q + 290 a. b. c. Compare the demand conditions in each i.e. how do the two markets differ in their demand for the firm' s product? How much total output should the film produce (for both markets combined)? How should that output be allocated between markets 1 and 2? IVhat price should the film charge in each market?
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