Suppose a monopolist produces two different products. If the marginal cost of producing one is lower than the marginal cost of producing the other, and the monopolist charges a different price for the two goods, then the monopolist is:
A)not price discriminating.
B)imperfectly price discriminating.
C)perfectly price discriminating.
D)not maximizing its profit.

Question

Quizplus · Accepted Answer

Price discrimination refers to the practice of charging different buyers different prices for essentially the same good or service, but in this case, the products are different.

Suppose a Monopolist Produces Two Different Products