An Ordinary Price- Discriminating Monopolist That Faces a Downward- Sloping

question 73

Multiple Choice

An ordinary price- discriminating monopolist that faces a downward- sloping demand curve in one market and a horizontal demand curve in another market will:

• A)charge the same price in both markets.
• B)sell an aggregate output corresponding to the aggregate marginal revenue equaling marginal cost.
• C)charge p = MR where it has market power, and p = AR in the others.
• D)charge p = MR in both markets.

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Definitions:

PERT

Short for Program Evaluation and Review Technique, a project management tool used to schedule, organize, and coordinate tasks within a project.

CPM

Critical Path Method, a project management tool used to schedule, organize, and coordinate tasks within a project.

Define Slack

The amount of time that a task in a project schedule can be delayed without causing a delay to subsequent tasks or the project completion date.

Ethical Issues

Moral challenges affecting decisions and actions in personal and professional settings.