Multiple Choice
If an ordinary price discrimination monopolist charges a higher price in one market than another, it must mean that at the profit- maximising level of output in each market the:
A) monopolist is implementing perfect price discrimination.
B) price- elasticity of demand is higher in the high- price market.
C) price- elasticity of demand is lower in the high- price market.
D) reservation prices are generally higher in the high- price market.
Correct Answer:
Verified
Correct Answer:
Verified
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