The Following Graph Shows the Demands and Marginal Revenue in Two

Multiple Choice

The following graph shows the demands and marginal revenue in two markets,1 and 2,for a price discriminating firm along with total marginal revenue,MR_T,and marginal cost. What rule do you follow for price determination for a firm that practices price discrimination?

A) elasticity and price are not related
B) price is lower in the higher elasticity market
C) price is higher in the higher elasticity market
D) profit is maximized when both prices and elasticities are equal
E) none of the above