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Suppose That a Monopolist Produces Good X

Question 176

Multiple Choice

Suppose that a monopolist produces good X.He sells one version of X to consumers and another version to businesses.The marginal cost of the consumer version is $5,while the business version has a marginal cost of $5.75.One can infer that


A) the monopolist will charge two different prices and is not practicing price discrimination.
B) the monopolist will charge one uniform price to both consumers and businesses.
C) the monopolist will charge two different prices and is perfectly price-discriminating.
D) the monopolist will charge two different prices and is imperfectly price-discriminating.
E) businesses will try to sell their units to consumers for a profit.

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