The Diagram Below Shows Total Revenue for a Single- Price

question 82

Multiple Choice

The diagram below shows total revenue for a single- price monopolist.
FIGURE 10- 3
-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?

• A)Yes,because since marginal cost is constant,the firm must set a single price.
• B)No,this firm can increase its profits by price discriminating across the two market segments.
• C)Yes,because it has set a price such that MC is between the MRs of the two market segments.
• D)No,because it is only possible to equate MR and MC when there is a single MR curve.

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Definitions:

Transamination

A biochemical process that transfers an amino group from an amino acid to a keto acid, altering amino acid structure.

Essential Amino Acids

Indispensable amino acids that the body cannot synthesize on its own and must be obtained through diet.

Amine Group

A functional group and form of nitrogen compound found in amino acids and neurotransmitters, characterized by a nitrogen atom attached to one or more alkyl groups.

Oxidative Deamination

Oxidative deamination is a biochemical process in which an amine group is removed from an amino acid through oxidation, producing ammonia.