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Suppose a Monopolist Sells One Version of Its Output to Consumers

Question 85

Multiple Choice

Suppose a monopolist sells one version of its output to consumers and another version to businesses.The marginal cost of the consumer version is $5 per unit while the business version has marginal costs of $5.75.If resale is impossible,one can infer that:


A) the monopolist will charge two different prices and is not necessarily practicing price discrimination.
B) the monopolist will charge a 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.

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