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Consider a Monopolist Which Sells Output in Two Markets,the Home

Question 60

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Consider a monopolist which sells output in two markets,the home market and the foreign market.Initially the monopolist is unable to price discriminate and sets a single price for both markets.However,the demand in the foreign market is such that at the price the monopoly sets,no goods are sold in the foreign market.If the monopolist is then able to price discriminate,will the overall deadweight loss increase or decrease? Explain.

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Since the monopolist is not pricing the ...

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