A price-discriminating monopolist with two markets will equate
A) the prices of two markets.
B) price and marginal revenue in each of the two markets.
C) marginal revenue and marginal cost in each of the two markets.
D) average revenue and marginal revenue between the two markets.

Question

Quizplus · Accepted Answer

A price-discriminating monopolist will equate marginal revenue (MR) and marginal cost (MC) in each of the markets separately to maximize profit. This allows the monopolist to charge different prices in each market based on the consumers' willingness to pay, rather than equating prices or revenues across markets.

A Price-Discriminating Monopolist with Two Markets Will Equate