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.

---

Definitions:

Deceit

The action or practice of deceiving someone by concealing or misrepresenting the truth.

Trespass

An unlawful act of entering, or causing damage to, someone else's property without permission.

Internet Defamation

The act of damaging someone's reputation by making false statements about them online.

Hyperlink

A reference or navigation element in documents to other sections of the same document or to external resources, often used on the Internet.