MNO Limited Publishes a Magazine Targeted at Urban Professionals Who

Multiple Choice

MNO Limited publishes a magazine targeted at urban professionals who live on the east and west coasts of the U.S., and all of the magazines are printed at a marginal cost of $0.50 per copy at a publishing plant in Kansas. If the East Coast elasticity of demand for the magazine is -1.25 and the West Coast elasticity of demand is -1.50, what prices should MNO Limited charge for the magazines in these two markets in order to maximize profits?

A) Price should be $0.50 in both markets.
B) Price should be $2.50 on the West Coast and $1.50 on the East Coast.
C) Price should be $1.50 on the West Coast and $2.50 on the East Coast.
D) Price should be $0.40 on the West Coast and $0.33 on the East Coast.