Consider a Monopolist That Is Able to Distinguish Between Two

question 18

Multiple Choice

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.How can this firm maximize its profit?

• A)maintain the current output and its allocation across segments
• B)increase the output in segment A and decrease the output in segment B
• C)increase the output in segments A and B
• D)decrease the output in segments A and B
• E)decrease the output in segment A and increase the output in segment B

---

Definitions:

Non-Slaveholders

Individuals in societies with slavery who do not own slaves, often farming or working class without the means or desire to own slaves.

Federal Laws

Laws passed by the national government of a federal state, applicable nationwide.

Free Blacks

African Americans who were not enslaved before the Civil War, especially significant in the United States, living either by purchasing their freedom, being emancipated, or born to free parents.

Gag Rule

A rule limiting or preventing debate on an issue, which has been notably used in legislative bodies.