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 39 times)

tspaw0811

  • Full Member
  • ***
  • Posts: 165
Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for its product. Marginal cost is constant at $100 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 $85 and marginal revenue in segment B is $105. Is this firm maximizing its profit?
◦ No, because it is only possible to equate MR and MC when there is a single MR curve.
◦ Yes, because it has set a price such that MC is between the MRs of the two market segments.
◦ No, this firm can increase its profits by price discriminating across the two market segments.
◦ Yes, because since marginal cost is constant, the firm must set a single price.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by tspaw0811 on Oct 12, 2022

jojo120419

  • Full Member
  • ***
  • Posts: 158
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




tspaw0811

  • Member
  • Posts: 165
Reply 2 on: Oct 12, 2022
Excellent


sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

For a complete list of videos, visit our video library