A firm with monopoly, A firm with Monopoly in two markets

A firm with monopoly

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Reference no: EM13150913

Explain, using an example, why the following versions of a profit-maximizing approach to price discrimination are not correct:

A) A firm with Monopoly in two markets and the same costs of serving them should charge a higher price in that market with a higher demand.

B) A firm with a Monopoly in two markets with different marginal costs should always charge a higher price in the market with the higher marginal costs

Reference no: EM13150913

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