A Price-Discriminating Monopolist Sells in Two Separate Markets Such That

question 13

Multiple Choice

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other.It charges $6 in one market and $8 in the other market.At these prices, the price elasticity in the first market is -2.10 and the price elasticity in the second market is -0.40.Which of the following actions is sure to raise the monopolist's profits?

• A)Raise both p₁ and p₂.
• B)Raise p₂.
• C)Lower p₂.
• D)Raise p₁ and lower p₂.
• E)Raise p₂ and lower p₁.

---

Definitions:

Global Arena

The international stage or context in which countries, cultures, and economies interact and engage with each other.

Culture Shapes

The manner in which the prevailing culture of a society or organization influences behaviors, attitudes, and perceptions.

Stakeholders

Individuals or entities that have an interest or stake in the success and operations of a business, including employees, customers, investors, and suppliers.

Mass Production Technologies

Techniques and tools used in the production of large quantities of standardized products, typically utilizing assembly lines and automation to achieve high efficiency and lower costs.