MNO Limited publishes a magazine targeted at urban professionals who live on the east and west coasts of the U.S., and all of the magazines are printed at a marginal cost of $0.50 per copy at a publishing plant in Kansas. If the East Coast elasticity of demand for the magazine is -1.50 and the West Coast elasticity of demand is -2, what prices should MNO Limited charge for the magazines in these two markets in order to maximize profits? A.Price should be $1.50 on the West Coast and $2 on the East Coast B. Price should be $0.50 in both markets C. Price should be $2 on the West Coast and $1.50 on the East Coast D.Price should be $1 on the West Coast and $1.50 on the East Coast

MNO Limited publishes a magazine targeted at urban professionals who live on the east and west coasts of the U.S., and all of the magazines are printed at a marginal cost of $0.50 per copy at a publishing plant in Kansas. If the East Coast elasticity of demand for the magazine is -1.50 and the West Coast elasticity of demand is -2, what prices should MNO Limited charge for the magazines in these two markets in order to maximize profits? A.Price should be $1.50 on the West Coast and $2 on the East Coast B. Price should be $0.50 in both markets C. Price should be $2 on the West Coast and $1.50 on the East Coast D.Price should be $1 on the West Coast and $1.50 on the East Coast

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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