Multiple Choice
(Figure: Third Degree Monopolist) The monopolist in the graph has market power; he can separate the market into different consumer groups based on their elasticities of demand, and he can prevent arbitrage. The monopolist has a marginal cost of $10. If he practices third-degree price discrimination, total producer surplus will be
A) $56,250.
B) $100,000.
C) $156,250.
D) $43,750.
Correct Answer:

Verified
Correct Answer:
Verified
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