In third-degree price discrimination,the monopolist will choose quantities so that each market has the same
A) price.
B) total revenue.
C) marginal revenue.
D) elasticity.

Question

Quizplus · Accepted Answer

In third-degree price discrimination, the monopolist segments markets and charges different prices in each segment to maximize profit. The key to maximizing profit across these segments is to ensure that the marginal revenue (MR) from selling an additional unit is the same in all markets. This allows the monopolist to equate the MR to the marginal cost (MC) of production, optimizing the allocation of output across the different segments to maximize overall profit.

In Third-Degree Price Discrimination,the Monopolist Will Choose Quantities So That