Refer to the figure. In order to profit maximize, the monopolist should: Charge a price of $16 in Market A, and $10 in Market B. Charge a uniform price of $6 in both markets. Charge a price of $14 in Market A, and $9 in Market B. Charge a price of $16 in Market A, and $6 in Market B.

Refer to the figure. In order to profit maximize, the monopolist should: Charge a price of $16 in Market A, and $10 in Market B. Charge a uniform price of $6 in both markets. Charge a price of $14 in Market A, and $9 in Market B. Charge a price of $16 in Market A, and $6 in Market B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Figure: Price Discriminating Monopolist
Market A
P
$20
16
14
6
Q₁ Q₂
$12
10
9
-AC = MC 6
Market B
AC = MC
MR
MR
Refer to the figure. In order to profit maximize, the monopolist should:
Charge a price of $16 in Market A, and $10 in Market B.
Charge a uniform price of $6 in both markets.
Charge a price of $14 in Market A, and $9 in Market B.
O Charge a price of $16 in Market A, and $6 in Market B.

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