A Monopolist Sells in Two Different Markets and Charges the Same

question 99

Multiple Choice

A monopolist sells in two different markets and charges the same price of $10 in both markets. In Market A, the demand curve is described by Q_d = 50 - 2P. In Market B, the demand curve is described by Q_d = 60 - P. If the monopolist lowers prices by $1 in the market with the more elastic demand and raises prices by $1 in the market with the more inelastic demand curve, by how much does its total revenue change?

• A) -$27
• B) $459
• C) $767
• D) $308

Analyze the effect of conflict on the pace of resource extraction.

Assess the impact of government regulations on user costs in resource extraction.

Explain how property rights influence the rate of resource extraction.

Determine the optimal extraction level of a nonrenewable resource.

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Definitions:

Privacy Commissioner

An official or regulatory body responsible for overseeing and enforcing laws related to privacy and data protection.

Tort

A legal wrong committed against a person or property, independent of contracts, for which the law provides a remedy.

Discriminatory Manner

Behaving or treating others in a biased way based on their race, age, sex, religion, or other personal characteristics.

Unlawful Invasion

An unauthorized entry or encroachment into another person's property or rights, often leading to legal action.