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If a Firm Supplies Separable Markets with Price Elasticities η\eta 1 And

Question 17

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If a firm supplies separable markets with price elasticities η\eta 1 and η\eta 2,it should set prices P1 and P2 so that:


A) P1 η\eta 1 = P2 η\eta 2.
B) P1 / η\eta 1 = P2 / η\eta 2.
C) P1(1 + 1/ η\eta 1) = P2 (1 + 1/ η\eta 2) .
D) P1/(1 - 1 / η\eta 1) = P2 / (1 - 1/ η\eta 2) .
E) P1 = 1 - 1/ η\eta 1 and P2 = 1 - 1/ η\eta 2.

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