Suppose That a Price Discriminating Monopolist Is Able to Divide

question 104

Multiple Choice

Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $50 to the group whose customers have the most elastic demand, what price are they likely to charge to the group whose customers have the least elastic demand?

• A) $50
• B) more than $50
• C) less than $50
• D) The answer depends on the marginal revenue for that group.

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Hepat/o

A prefix in medical terminology referring to the liver.

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A prefix used in medical terminology referring to nerves or the nervous system.

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A prefix used in medical terms related to the lungs or air, such as in pneumonia (infection of the lungs).

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