An ordinary price discrimination monopolist that also has to decide on the production level would choose the quantities sold in the two markets so that:
A)the revenue is maximized.
B)consumer would not notice the difference.
C)the marginal costs in the two markets are equal.
D)the aggregate output is such that aggregate marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

The monopolist would aim to maximize their profit by producing up to the point where marginal revenue equals marginal cost in each market. This means they would choose the quantities sold in each market to ensure that the aggregate marginal revenue equals marginal cost. This is the point where the monopolist can produce the most units and still make a profit, so it is the best choice.

An Ordinary Price Discrimination Monopolist That Also Has to Decide