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:

Cognitive Map

An internal representation of the spatial relationships among objects in an environment, allowing for navigation and understanding of that space.

Observational Learning

The process of learning behaviors by watching and imitating others.

Insight

The capacity to gain an accurate and deep understanding of someone or something.

Latent Learning

Learning that occurs without any obvious reinforcement or indication at the time of learning but that can be demonstrated later when a suitable motivation is present.