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Suppose That a Price-Discriminating Monopolist Divides Its Market into Two

Question 92

Multiple Choice

Suppose that a price-discriminating monopolist divides its market into two segments.The firm will charge the lower price in the market segment where consumers


A) have relatively less elastic demand
B) have relatively more elastic demand
C) attach a higher marginal value to each unit of the good
D) have perfectly inelastic demand
E) attach higher average value to units of the good

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