Pizza joints often offer substantially lower prices for pizza picked up at the shop compared to delivered pizza prices. This may be an attempt at
A) perfect price discrimination.
B) group price discrimination.
C) quantity discrimination.
D) second-degree price discrimination.
Question 2
Suppose a profit-maximizing monopoly is able to employ multimarket price discrimination. The marginal cost of providing the good is constant and the same in both markets. The marginal revenue the firm earns on the last unit sold in the market with the lower price will be
A) greater than the marginal revenue the firm earns on the last unit sold in the market with the higher price.
B) less than the marginal revenue the firm earns on the last unit sold in the market with the higher price.
C) equal to the marginal revenue the firm earns on the last unit sold in the market with the higher price.
D) greater than the marginal cost of the last unit.
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