Suppose That a Price-Discriminating Producer Divides Its Market into Two

question 233

Multiple Choice

Suppose that a price-discriminating producer divides its market into two segments.If the firm sells its product at a price of $34 in the market segment with relatively less-elastic customer demand, the price in the market segment with more-elastic customer demand will be

• A)greater than $34.
• B)less than $34.
• C)less than marginal revenue in that market segment.
• D)equal to marginal revenue in that market segment.

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Definitions:

Demography

The statistical study of populations, analyzing structure, distribution, and trends through births, deaths, migration, and aging.

Populations

Groups of individuals belonging to the same species that live in the same area and have the potential to interbreed.

Gerontology

The scientific study of aging and the problems faced by the elderly.

Erik Erikson

A psychoanalyst and developmental psychologist recognized for his theories regarding human psychological growth.