The Figure Given Below Shows the Demand Curves of Two

The figure given below shows the demand curves of two classes of buyers for tickets to a football match. Figure 24.4 D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
Refer to Figure 24.4.What price must be charged to both the groups to maximize profits?

A) P₁
B) P₂
C) Group 1 must be charged P₁ and group 2 must be charged P₂.
D) Group 1 must be charged P₂ and group 2 must be charged P₁.
E) Both the groups must be charged a price that is equal to the marginal cost.

Correct Answer:

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