The Following Table Shows the Marginal Revenues Earned by a Price

The following table shows the marginal revenues earned by a price discriminating monopolist from two different markets. Table 24.4
Refer to Table 24.4.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

Correct Answer:

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