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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 9
Explain why the following versions of a profit-maximizing approach to market separation are not correct.
1. A firm with a monopoly in two markets and the same costs of serving them should charge a higher price in that market with a higher demand.
2. A firm with a monopoly in two markets with different marginal costs should always charge a higher price in the market with the higher marginal costs.
1. A firm with a monopoly in two markets and the same costs of serving them should charge a higher price in that market with a higher demand.
2. A firm with a monopoly in two markets with different marginal costs should always charge a higher price in the market with the higher marginal costs.
Explanation
Verified
Verified
1) The price in each market depends on t...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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