A monopolist is able to practice third-degree price discrimination between two markets. The demand function in the first market is q = 500 - 2p and the demand function in the second market is q = 1,500 - 6p. To maximize his profits, he should
A) charge a higher price in the second market than in the first.
B) charge a higher price in the first market than in the second.
C) charge the same price in both markets.
D) sell only in one of the two markets.
E) None of the above.
Correct Answer:
Verified
Q2: A monopolist finds that a person's demand
Q3: A monopolist sells in two markets. The
Q4: A profit-maximizing monopolist is able to practice
Q4: Third-degree price discrimination occurs when a monopolist
Q5: In a monopolistically competitive industry with zero
Q6: A monopolist sells in two markets. The
Q7: A price-discriminating monopolist charges p1 in market
Q11: A monopolist who is able to practice
Q14: A discriminating monopolist is able to charge
Q16: It is possible that a profit-maximizing monopolist
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents