An internationally discriminating monopolist is one that:

Question

Quizplus · Accepted Answer

An internationally discriminating monopolist can charge different prices in its domestic and foreign markets. This is because the monopolist faces different demand conditions in each market, allowing them to potentially price discriminate and charge higher prices in markets with less elastic demand. Option A is incorrect because while a monopolist can potentially price discriminate domestically, the question specifies that the monopolist is internationally discriminating. Option C and D are incorrect because they describe demand conditions that do not align with international price discrimination.

An Internationally Discriminating Monopolist Is One That