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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