This topic contains a solution. Click here to go to the answer

Author Question: Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for ... (Read 75 times)

dekbert

  • Full Member
  • ***
  • Posts: 140
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by dekbert on Oct 12, 2022

ellie

  • Full Member
  • ***
  • Posts: 168
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.
Answer Preview
Only 35% of students answer this correctly




dekbert

  • Member
  • Posts: 140
Reply 2 on: Oct 12, 2022
Excellent


emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Your heart beats over 36 million times a year.

For a complete list of videos, visit our video library