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Figure: Two Demand Curves a Monopolist Sells Its Output

Question 21

Multiple Choice

Figure: Two Demand Curves Figure: Two Demand Curves A monopolist sells its output in two markets, each with different demand curves as shown in this figure. If the marginal cost is identical in both markets, the monopolist should charge a ______ price in the inelastic market, represented by the demand curve ______. A) higher; D<sub>2</sub> B) higher; D<sub>1</sub> C) lower; D<sub>2</sub> D) lower; D<sub>1</sub> A monopolist sells its output in two markets, each with different demand curves as shown in this figure. If the marginal cost is identical in both markets, the monopolist should charge a ______ price in the inelastic market, represented by the demand curve ______.


A) higher; D2
B) higher; D1
C) lower; D2
D) lower; D1

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