third degree price discrimination market

I know that the total MR = MR of student + MR of adult, but wy is it kinked at the top?


I believe this is just a horizontal sum. At the very top of your graph, only adult has a part of its curve above 10.25. So when your summing horizontally student =0 Adult = x, This changes once you are below 10.25, then all of a sudden you have student = x and adult = x. This additional amount from student causes the kink. If pretend student was always =0 then the total on the right would be identical to adult.

I hope this helped. I'm sorry if it's not phrased better.

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  • $\begingroup$ This is the correct answer. $\endgroup$ – TheSaint321 Apr 5 '17 at 15:30

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