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Author Question: Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for ... (Read 18 times)

kandiwilson165@gmail.com

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Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for its product. Marginal cost is constant at $18 for each unit produced. The firm is currently selling its output at a single price and allocating its output across segments such that marginal revenue in segment A is $25 and marginal revenue in segment B is $15. How can this firm maximize its profit?
◦ decrease the output in segment A and increase the output in segment B
◦ increase the output in segment A and decrease the output in segment B
◦ decrease the output in segments A and B
◦ increase the output in segments A and B
◦ maintain the current output and its allocation across segments


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Marked as best answer by kandiwilson165@gmail.com on Oct 12, 2022

KeriJennin

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kandiwilson165@gmail.com

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Reply 2 on: Oct 12, 2022
Thanks for the timely response, appreciate it


brbarasa

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Reply 3 on: Yesterday
Excellent

 

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