EP ECONOMICS,AP EDITION-CONNECT ACCESS
EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 13.4, Problem 2QQ

The D2e segment of the demand curve D2eD1 graph (b) implies that:

a. this firm’s total revenue will fall if it increases its price above P0.

b. other firms will match a price increase above P0.

c. the firm’s relevant marginal-revenue curve will be MR1 for price increases above P0.

d. the product in this industry is necessarily standardized.

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You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group s elasticity of demand is while group s is Your marginal cost of producing the product is $ a Determine your optimal markups and prices under thirddegree price discrimination. b Identify the conditions under which thirddegree price discrimination enhances profits.
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