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A Price-Discriminating Monopolist Divides Its Customers into Two Segments Based

Question 11

Multiple Choice

A price-discriminating monopolist divides its customers into two segments based on price elasticity of demand.If it sells its product for a price of $42 in the market segment where demand is relatively less price elastic,the price in the market segment where demand is more price elastic will be _____


A) $42.
B) greater than $42.
C) less than $42.
D) less than the marginal revenue in that market segment.
E) equal to the marginal revenue in that market segment.

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