Multiple Choice
If a firm supplies separable markets with price elasticities 1 and 2,it should set prices P1 and P2 so that:
A) P1 1 = P2 2.
B) P1 / 1 = P2 / 2.
C) P1(1 + 1/ 1) = P2 (1 + 1/ 2) .
D) P1/(1 - 1 / 1) = P2 / (1 - 1/ 2) .
E) P1 = 1 - 1/ 1 and P2 = 1 - 1/ 2.
Correct Answer:

Verified
Correct Answer:
Verified
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