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

question 7

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 per unit in the foreign market?

• A) $90
• B) $110
• C) $70
• D) $35

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Definitions:

Giuseppe Mazzini

An Italian politician, journalist, and activist for the unification of Italy in the 19th century, playing a significant role in the Italian revolutionary movement.

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