Please explain your answers

1. The following shows the demands and marginal revenue in two markets (DI and MR1, and D2 and MR2) for a price discriminating firm along with total demand, DT, marginal revenue, MRT, and marginal cost MC. 350 325 300 D2 275 250 MR2 225 MC 200 175 D1 MR1 DT 150 125 MRT 100 75 50 25 100 200 300 400 500 600 700 800 - . D1 - - - MR1 " - D2 - MR.2 BENDS MRT . DT - MC As with the PPT slides, you can view the data generating these lines; for reference, D1 = 200 - 0.25Q D2 = 300 - 0.25Q MRT = 250 - 0.25Q DT = 250 - 0.125Q MC = 0.0008Q 2 - 0.45Q + 150 a. Compare the demand conditions in each market; i.e. how do the two markets differ in their demand for the firm's product? b. How much total output should the firm produce (for both markets combined)? How should that output be allocated between markets 1 and 2? c. What price should the firm charge in each market