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1. a. Market 1 consists of high demanders for the product and market 2 is the market for low demanders of the product. This is because the intercept of the first market demand is higher than that compared to the 2nd market.
b. The decision of the total output is decided by the point where MRT equals MC. Here the total output is at 40 units. At this price $300, MR1 is at 30 units implying that 30 units would be allocate to market 1 and MR2 is at 10 units and 10 units would be allocated to market 2 as shown in the following figure....

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