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A Firm Produces a Product at a Fixed Marginal Cost

Question 5

Multiple Choice

A firm produces a product at a fixed marginal cost of $2 and sells the product on two different markets (A and B) . The demand on market A is QA = 10 - P. The demand on market B is QB = 20 - P. What price should the firm charge on market B?


A) 4
B) 6
C) 9
D) None of the above is correct.

Correct Answer:

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