To Maximize Profits, the Discriminating Monopolist Sells Abroad Rather Than

question 145

Multiple Choice

To maximize profits, the discriminating monopolist sells abroad rather than selling additional units at home because:

• A) the home market is just too competitive.
• B) there would be more incentive for entry from other firms.
• C) the market price at home would rise and the firm would lose customers.
• D) it would lower total profits if it lowered its home price in order to sell the additional units.

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Definitions:

Action

In the context of goals or objectives, it refers to the process of taking concrete steps or measures towards achieving a specific result or outcome.

Marketing Communication

The process of using various channels and messages to communicate with a market, including advertising, sales promotion, and public relations.

Direct Link

A straight, uninterrupted connection or communication channel between two entities, typically referring to network links or business relationships.

Consumer's Purchase

The act of a consumer buying products or services for personal use.