Question: Does a monopolys ability to price discriminate between two groups of consumers depend on its marginal cost curve? Why or why not? [Consider two cases:
Does a monopoly’s ability to price discriminate between two groups of consumers depend on its marginal cost curve? Why or why not? [Consider two cases:
(a) the marginal cost is so high that the monopoly is uninterested in selling to one group;
(b) the marginal cost is low enough that the monopoly wants to sell to both groups.]
4. Nonlinear Price Discrimination
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