If we require a monopolist to stop practicing ordinary price discriminationacross two markets, one of two things will happen: O a. the monopolist will cease pricing on the inelastic portion of each demand curve in thetwo markets to price on the elastic portion, or shut-down. O b. the monopolist will reduce sales in the inelastic market and increase them in the elastiC market, or stop selling in the inelastic market altogether. Oc the monopolist will begin making it possible for consumers to arbitrage across the two markets, or shut-down. d. the monopolist will stop selling in the more elastic market or begin charging a price inboth markets which is a weighted average of the previous discriminatory prices.
If we require a monopolist to stop practicing ordinary price discriminationacross two markets, one of two things will happen: O a. the monopolist will cease pricing on the inelastic portion of each demand curve in thetwo markets to price on the elastic portion, or shut-down. O b. the monopolist will reduce sales in the inelastic market and increase them in the elastiC market, or stop selling in the inelastic market altogether. Oc the monopolist will begin making it possible for consumers to arbitrage across the two markets, or shut-down. d. the monopolist will stop selling in the more elastic market or begin charging a price inboth markets which is a weighted average of the previous discriminatory prices.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter11: Monopoly And Antitrust Policy
Section: Chapter Questions
Problem 3SCQ: Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation...
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