Assume the Figure Applies to a Pure Monopolist and That

question 195

Multiple Choice

Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, its profit-maximizing level of output will be

• A)realize a smaller economic profit than a nondiscriminating monopolist.
• B)produce a larger output than a nondiscriminating monopolist.
• C)produce the same output as a nondiscriminating monopolist.
• D)produce a smaller output than a nondiscriminating monopolist.

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