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 $100 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 $85 and marginal revenue in segment B is $105.Is this firm maximizing its profit?

A) Yes,because it has set a price such that MC is between the MRs of the two market segments.
B) No,because it is only possible to equate MR and MC when there is a single MR curve.
C) Yes,because since marginal cost is constant,the firm must set a single price.
D) No,this firm can increase its profits by price discriminating across the two market segments.