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Author Question: Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for ... (Read 36 times)

dekbert

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on: Oct 12, 2022
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. Is this firm maximizing its profit?
◦ Yes, because since marginal cost is constant, the firm must set a single price.
◦ Yes, because it has set a price such that MC is between the MRs of the two market segments.
◦ No, because it is only possible to equate MR and MC when there is a single MR curve.
◦ No, this firm can increase its profits by price discriminating across the two market segments.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by dekbert on Oct 12, 2022

ellie

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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dekbert

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Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review

kishoreddi

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Reply 3 on: Yesterday
Excellent

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