Which of the Following Is True of a Price-Discriminating Monopolist

question 31

Multiple Choice

Which of the following is true of a price-discriminating monopolist who is selling output in two distinct markets?

• A)Price will be higher in the market in which demand is unit-elastic.
• B)Price will be lower in the market in which demand is more elastic.
• C)Price will be equal in each market,as long as there is a constant marginal cost.
• D)Price will be lower in the market for which there are fewer substitute goods.

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Definitions:

Competitive Edge

An advantage a company has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Uniqueness

The quality of being one of a kind or unlike anything else.

Window of Opportunity

A brief period during which a specific action can be taken or a situation exploited before circumstances change.

Technical Excellence

Achieving the highest level of skill or proficiency in a particular area of technology or technical practice.