Suppose a firm produces identical goods for two separate markets and practices third-degree price discrimination. In the first market the firm charges $30 per unit, and it charges $22 per unit in the second market
Which of the following represents the ratio of price elasticities of demand in the two markets? A) E2 = (21/29)E1
B) E2 = (29/21)E1
C) E2 = E1
D) E2 = (22/30)E1
E) none of these
E
Economics
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Suppose Reggie has a 25 percent chance of not collecting $1,000 in one year. If the interest rate is 10 percent, what is the expected value of the future payment?
A. $750. B. $682. C. $909. D. $227.
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