If Two Identifiable Markets Differ with Respect to Their Price

question 73

Multiple Choice

If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market power will

• A)set a higher price in the market that is more price inelastic.
• B)set a lower price in the market that is more price inelastic.
• C)set price so as to equate the elasticity of demand across markets.
• D)set price equal to marginal cost in both markets.

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