Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $50 to the group whose customers have the most elastic demand, what price are they likely to charge to the group whose customers have the least elastic demand?
A. $50
B. more than $50
C. less than $50
D. The answer depends on the marginal revenue for that group.
Answer: B
Economics
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Describe the relationship between the Federal Reserve and the legislative and executive branches of the U.S. government
What will be an ideal response?
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If personal taxes are cut temporarily, the resulting
A. increase in personal saving would be larger than if they were cut permanently. B. decrease in personal saving would be larger than if they were cut permanently. C. decrease in personal saving would be smaller than if they were cut permanently. D. increase in personal saving would be smaller than if they were cut permanently.
Economics