The Following Table Shows the Marginal Revenues Earned by a Price

question 26

Multiple Choice

The following table shows the marginal revenues earned by a price discriminating monopolist in two different markets.Table 11.5

-When practicing price discrimination, a firm can increase its revenue by:

• A)charging a higher price to the customers with a more inelastic demand.
• B)charging a higher price to the customers with a perfectly elastic demand.
• C)supplying more in a market with a more inelastic demand.
• D)supplying less in a market with lower elasticity of demand.
• E)charging a lower price in a market dominated by wealthy consumers.

---

Definitions:

Consideration

Consideration in contract law refers to something of value promised to another when making a contract, which can be a service, money, or an object.

Bilateral Contract

A type of contract involving two parties where each party makes a promise or set of promises to the other.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.