If a Price-Discriminating Monopolist Sells the Same Product in Two

question 25

Multiple Choice

If a price-discriminating monopolist sells the same product in two markets but charges a higher price in market X and a lower price in market Y,the pricing difference indicates that demand is:

• A) more elastic in market X than market Y.
• B) less elastic in market X than market Y.
• C) less elastic in market Y than market X.
• D) the same in both markets X and Y.

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Definitions:

Probability Of Failure

The likelihood, often expressed as a percentage or ratio, that a system or component will not perform its intended function within a specified period.

Service Reliability

The consistency and dependability of a service provider in delivering promised services to customers at the required performance level.

Electrical Motor

A device that converts electrical energy into mechanical energy, often used in various machines and vehicles.

Reliabilities

The degree to which a system, component, or process consistently performs its intended function under prescribed conditions over time.