Consider a Monopolist That Is Able to Distinguish Between Two

Multiple Choice

Consider a monopolist that is able to distinguish between two distinct market segments,A and B,for its product.Marginal cost is constant at $18 for each unit produced.The firm is currently selling its output at a single price and allocating its output across segments such that marginal revenue in segment A is $25 and marginal revenue in segment B is $15.How can this firm maximize its profit?

A) increase the output in segment A and decrease the output in segment B
B) increase the output in segments A and B
C) decrease the output in segment A and increase the output in segment B
D) decrease the output in segments A and B
E) maintain the current output and its allocation across segments