The Following Table Shows the Marginal Revenues Earned by a Price

Multiple Choice

The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets. Table 10.5

-Refer to Table 10.5.How would a price-discriminating monopolist allocate his or her product between market X and market Y if marginal cost is $40 in both markets?

A) 4 units in market X; 1 unit in market Y
B) 3 units in market X; 2 units in market Y
C) 2 units in market X; 3 units in market Y
D) Nothing in market X; 5 units in market Y
E) 5 units in market X; nothing in market Y