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jlg71 jlg71
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Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for its product. Marginal cost is constant at $100 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 A is $85 and marginal revenue in segment B is $105. How can this firm maximize its profit?

▸ increase the output in segment A and decrease the output in segment B

▸ decrease the output in segment A and increase the output in segment B

▸ decrease the output in segments A and B

▸ maintain the current output and its allocation across segments

▸ increase the output in segments A and B
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Microeconomics

Microeconomics


Edition: 17th
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itnow96itnow96
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jlg71 Author
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A year ago
Correct Slight Smile TY
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Thank you, thank you, thank you!
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2 hours ago
Good timing, thanks!
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