Consider a monopolist selling in two markets. At a price of 60, the elasticity of demand in market A is 5 and in market B is 6. Calculate the…
CA Foundation · Business Economics · PYQS · January 2026
Consider a monopolist selling in two markets. At a price of 60, the elasticity of demand in market A is 5 and in market B is 6. Calculate the marginal revenue in both markets and determine which market should receive more output.
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. Market A, MR 48; Market B, MR 50, output to market B should increase
Topics: Price Determination in Different Markets
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