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

question 115

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 price in the foreign market?

• A) $90
• B) $110
• C) $70
• D) $35

---

Definitions:

Partial Reinforcement

A conditioning schedule in which a response is sometimes reinforced, leading to more resistant behavior to extinction than continuous reinforcement.

Continuous Reinforcement

A reinforcement schedule in which a reward follows every correct response, often used to establish or strengthen new behaviors.

Operant Conditioning

A training mechanism that adjusts the vigor of an activity by the addition of incentives or the imposition of penalties.

Immediate Reinforcement

The immediate reward or punishment following a behavior, which influences the likelihood of that behavior being repeated.