To maximize profits,a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.
A) ratio of price to marginal cost
B) ratio of marginal cost to marginal utility
C) ratio of price to elasticity
D) marginal revenue
E) none of the above

Question

Quizplus · Accepted Answer

A monopolist engaging in price discrimination maximizes profits by equating marginal revenue across all markets, ensuring that the additional revenue from selling one more unit is the same in each market.

To Maximize Profits,a Monopolist That Engages in Price Discrimination Must