A Third-Degree Price Discriminating Monopolist Can Sell Its Output Either

question 116

Multiple Choice

A third-degree price discriminating monopolist can sell its output either in the local market or on an internet auction site (or both) . After selling all of its output, the firm discovers that the marginal revenue earned in the local market was $20 while its marginal revenue on the internet auction site was $30. To maximize profits the firm should:

• A) have sold more output in the local market and less at the internet auction site.
• B) do nothing until it acquires more information on costs.
• C) have sold less output in the local market and more on the internet auction site.
• D) sell less in both markets until marginal revenue is zero.
• E) sell more in both markets until marginal cost is zero.

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Definitions:

Latino Children

Describes children either originating from Latin America or of Latin American descent, focusing on their cultural, societal, and developmental aspects.

Two-parent Families

are families where children live with both of their biological or adoptive parents, as opposed to single-parent families.

Biological Concept

Refers to ideas and principles underlying the science of biology, including processes and phenomena related to living organisms.

Race

A social construct that categorizes people based on physical characteristics such as skin color, often influencing individuals' social and economic experiences.