When a Monopoly Sells Its Product in Multiple Markets, It

question 27

Multiple Choice

When a monopoly sells its product in multiple markets, it should:

• A)add the demand curves in both markets, derive the marginal revenue curve from the aggregate demand curve and optimize its output by setting marginal cost equal to marginal revenue derived from the aggregate demand curve.
• B)add the demand curves in both markets, derive the marginal revenue curve from the aggregate demand curve and optimize its output by setting price equal to marginal revenue.
• C)let managers in each market determine the optimal output based on cultural preferences.
• D)produce its product in each market and set MC = MR as any single market monopolist.

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A highly contagious viral disease, also known as chickenpox, marked by a widespread itchy rash.

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