A price-discriminating monopolist having identical costs in two markets should charge a higher price in that market
A)which has a higher demand.
B)which has a more elastic demand.
C)which has a less elastic demand.
D)which has a higher marginal revenue.

Question

Quizplus · Accepted Answer

A price-discriminating monopolist will charge a higher price in the market with less elastic demand because consumers in that market are less sensitive to price changes and are willing to pay more for the product.

A Price-Discriminating Monopolist Having Identical Costs in Two Markets Should