Suppose a Monopolist Produces Two Different Products

question 126

Multiple Choice

Suppose a monopolist produces two different products. If the marginal cost of producing one is lower than the marginal cost of producing the other, and the monopolist charges a different price for the two goods, then the monopolist is:

• A)not price discriminating.
• B)imperfectly price discriminating.
• C)perfectly price discriminating.
• D)not maximizing its profit.

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