(Scenario: Discriminating Monopolist) the Demand Curve in Its Home Market

question 44

Multiple Choice

(Scenario: Discriminating Monopolist) The demand curve in its home market is P = 200 - Q; the demand curve in its foreign market is P = 160 - 2Q; and its marginal cost is a constant $20 per unit. Its marginal revenue in the home market is MR =200 - 2Q and is MR = 160 - 4Q in the foreign market. What is the discriminating monopolist's profit-maximizing output in the foreign market?

• A) 90
• B) 110
• C) 70
• D) 35

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Definitions:

Discrimination

Unfair or unequal treatment of individuals based on certain protected characteristics such as race, gender, age, or disability.

Protected Class

Groups of people legally shielded from discrimination by law based on characteristics such as race, gender, age, disability, and religion.

Complainant's Qualifications

The specific requirements or conditions that a complainant must meet to pursue a legal action.

Equal Pay Act

A U.S. law aimed at abolishing wage disparity based on sex by ensuring equal pay for equal work performed by men and women.