In order to maximize profit, a firm that sells its output in two markets will allocate total output between the two markets so that:
A) marginal revenue is equal in the two markets
B) marginal revenue for the firm is equal to the sum of the marginal revenues
C) marginal revenue for the firm is equal to the sum of the marginal costs
D) both a and b
E) none of the above

Question

Quizplus · Accepted Answer

In order to maximize profit, the firm should allocate output between the two markets so that the marginal revenue is equal in the two markets.

In Order to Maximize Profit, a Firm That Sells Its