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

question 56

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 domestic market?

• A) 90
• B) 110
• C) 70
• D) 35

Analyze the effect of external factors such as poor growing seasons on market conditions.

Recognize the role of substitutes and complements in affecting demand.

Understand the factors that cause changes in supply and demand.

Identify the effects of technological improvements on supply.

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Definitions:

Normative

pertaining to norms, standards, or what is considered typical, ideal, or should be the case, often within a moral or ethical context.

Informative

Intended to provide new knowledge or data to the audience, often utilized in educational and professional contexts.

Informative

Intended to provide information or knowledge to the audience without necessarily aiming to persuade.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value.