If Different Markets for a Product Produced by a Monopolist

question 49

Multiple Choice

If different markets for a product produced by a monopolist can be separated and if the elasticity of demand differs between the two markets, then the monopolist will

• A) be able to make higher profits by using price discrimination.
• B) charge a single price in all markets.
• C) go out of business.
• D) sell the product in only one of the markets with inelastic demand curves.

---

Definitions:

Ingested Drug

A substance taken orally and absorbed through the gastrointestinal tract for medicinal or recreational purposes.

Therapeutic Response

The body’s reaction to a given treatment, indicating the effectiveness of the therapy in healing or alleviating symptoms.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.

Blame

Assigning responsibility for a fault or wrong, often focusing on negative outcomes without acknowledging contributing factors or circumstances.