A third degree price discriminating monopolist can sell its output - ProProfs Discuss
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A third-degree price discriminating monopolist can sell its output either in the local market or on an internet auction site (or both). Having sold all of its output it discovers that the marginal revenue in the local market is $20 while its marginal revenue on the internet auction site is $30. To maximize profits the firm should



A. Sell less in both markets until marginal revenue is zero.
B. Have sold more output in the local market and less at the internet auction site.
C. Do nothing until it acquires more information on costs.
D. Have sold less output in the local market and more on the internet auction site
E. Sell more in both markets until marginal cost is zero.

This question is part of Micro: Chapter 11
Asked by Twright, Last updated: Jan 24, 2020

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1 Answer

John Smith

John Smith

Answered Apr 25, 2017

Sell more in both markets until marginal cost is zero.
 

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