The Following Table Shows the Marginal Revenues Earned by a Price

question 26

Multiple Choice

The following table shows the marginal revenues earned by a price discriminating monopolist in two different markets.Table 11.5

-When practicing price discrimination, a firm can increase its revenue by:

• A)charging a higher price to the customers with a more inelastic demand.
• B)charging a higher price to the customers with a perfectly elastic demand.
• C)supplying more in a market with a more inelastic demand.
• D)supplying less in a market with lower elasticity of demand.
• E)charging a lower price in a market dominated by wealthy consumers.

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Definitions:

Unemployment Benefits

Payments made by the government or a designated agency to unemployed individuals who meet certain eligibility criteria.

Aggregate Supply

Aggregate Supply is the total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Taxes on Earnings

These are financial charges imposed by governments on individuals or entities based on their income or profits.

Fiscal Policy

Fiscal policy involves government spending and taxation decisions aimed at influencing economic conditions, such as stimulating economic growth, controlling inflation, and reducing unemployment.