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

question 65

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 home market?

• A) $90
• B) $110
• C) $70
• D) $35

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Definitions:

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to low levels of light and are primarily responsible for night vision.

Fovea

A tiny pit located in the macula of the retina that provides the clearest vision of all by having a high concentration of cones and no rods.

Color Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect or emit.

Dark Adaptation

The method through which eyes enhance their ability to perceive dimly lit environments.