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Question 41 (1 point) 15 15- 10 10- 5 5. D 1 VIRD 1 Q 5 10 15 MR 5 10 Residential Business The above figure shows the demandQuestion 42 (1 point) Consider a monopolist which sells output in two markets, the home market and the foreign market. The moQuestion 43 (1 point) Which of the following is true regarding a perfect-price-discriminating monopoly? Its marginal revenue

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Answer #1

Q41) option 4)

this is example of third degree price DISCRIMINATION, so all three conditions,

no arbitrage ( no chances of resale)

Different elasticities

Different types of consumers could be identified

42) option 3)

Firm will charge higher price in less elastic market

So charge higher price in home market, which is less elastic

43) option 4)

in perfect price discrimination, MR Curve is same as Demand Curve

44) option 4)

deadweight loss is lower in market , when Price discrimination is not possible

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