A Profit-Maximizing Monopolist Practices Third-Degree Price Discrimination

question 4

True/False

A profit-maximizing monopolist practices third-degree price discrimination. If he charges p₁ in market 1 and p₂ in market 2, where p₁ > p₂, then if the law forced him to charge the same price in both markets, more would be demanded in market 1 than in market 2.

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Definitions:

Bolsheviks

A faction of the Russian social-democratic movement that split from the Menshevik faction and, led by Lenin, seized control of Russia in the October Revolution of 1917.

October Revolution

A key event of the Russian Revolution of 1917, in which the Bolshevik party, led by Vladimir Lenin, overthrew the provisional government and established a Communist state.

Political Opponents

Individuals or groups opposing each other in ideology, policy, or political goals, often within the context of elections or legislative processes.

White Armies

Anti-Bolshevik forces during the Russian Civil War (1917-1923), composed mostly of monarchists, nationalists, and other anti-communist factions.