Which of the following statements about a third degree price discrimination monopolist selling in two different markets
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Question:
- Which of the following statements about a third degree price discrimination monopolist selling in two different markets (meaning to two groups of consumers) is FALSE?
- A third degree price discriminating monopolist prices makes higher profit than if it charged a uniform price in both market.
A profit maximizing third degree price discriminating monopolist sets marginal rev- enue equal across markets.
None of the above
A profit maximizing third degree price discriminating monopolist sets marginal rev- enue equal to marginal cost in both markets.
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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