If Two Identifiable Markets Differ with Respect to Their Price

Multiple Choice

If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market power will

A) set a higher price in the market that is more price inelastic.
B) set a lower price in the market that is more price inelastic.
C) set price so as to equate the elasticity of demand across markets.
D) set price equal to marginal cost in both markets.