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 -1.25 and the West Coast elasticity of demand is -1.50, what prices should MNO Limited charge for the magazines in these two markets in order to maximize profits? A) Price should be $0.50 in both markets
B) Price should be $2.50 on the West Coast and $1.50 on the East Coast
C) Price should be $1.50 on the West Coast and $2.50 on the East Coast
D) Price should be $0.40 on the West Coast and $0.33 on the East Coast
C
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