Question: Consider a monopolist that is able to distinguish between two distinct market segments, A and B , for its product. Marginal cost is constant at
Consider a monopolist that is able to distinguish between two distinct market segments, A and for its product. Marginal cost is constant at $ 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 is $ and marginal revenue in segment is $ How can this firm maximize its profit?
decrease the output in segment A and increase the output in segment
increase the output in segment A and decrease the output in segment
decrease the output in segments A and
increase the output in segments A and
maintain the current output and its allocation across segments
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