Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $50 to the group whose customers have the most elastic demand, what price are they likely to charge to the group whose customers have the least elastic demand?
A. $50
B. more than $50
C. less than $50
D. The answer depends on the marginal revenue for that group.
Answer: B
Economics
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