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.
Chapter9: Monopoly
Section: Chapter Questions
Problem 6SQP
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