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:

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