A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges p1 = $2 in one market and p2 = $8 in the other market. At these prices, the price elasticity in the first market is -2.20 and the price elasticity in the second market is -0.10. Which of the following actions is sure to raise the monopolist's profits?

A) Lower p2. B) Raise p2. C) Raise both p1 and p2. D) Raise p1 and lower p2. E) Raise p2 and lower p1. A) Lower p2. B) Raise p2. C) Raise both p1 and p2. D) Raise p1 and lower p2. E) Raise p2 and lower p1.

A monopolist has a constant marginal cost of $2 per unit and no fixed costs. He faces separate markets in the United States and England. He can set one price p1 for the U.S. market and another price p2 for the English market. If demand in the United States is given by Q1 = 7,000 - 700p1 and demand in England is given by Q2 = 3,200 - 400p2, then the price in the United States will

A) be smaller than the price in England by $1. B) be larger than the price in England by $3. C) equal the price in England. D) be larger than the price in England by $1. E) be smaller than the price in England by $3. A) be smaller than the price in England by $1. B) be larger than the price in England by $3. C) equal the price in England. D) be larger than the price in England by $1. E) be smaller than the price in England by $3.

A monopolist has a constant marginal cost of $2 per unit and no fixed costs. He faces separate markets in the United States and England. He can set one price p1 for the U.S. market and another price p2 for the English market. If demand in the United States is given by Q1 = 6,000 - 600p1 and demand in England is given by Q2 = 2,400 - 400p2, then the price in the United States will

A) be larger than the price in England by $2. B) be smaller than the price in England by $2. C) equal the price in England. D) be larger than the price in England by $4. E) be smaller than the price in England by $4. A) be larger than the price in England by $2. B) be smaller than the price in England by $2. C) equal the price in England. D) be larger than the price in England by $4. E) be smaller than the price in England by $4.

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges p1 = $4 in one market and p2 = $8 in the other market. At these prices, the price elasticity in the first market is -1.90 and the price elasticity in the second market is 20.30. Which of the following actions is sure to raise the monopolist's profits?

A) Raise p2. B) Raise p1 and lower p2. C) Lower p2. D) Raise both p1 and p2. E) Raise p2 and lower p1. A) Raise p2. B) Raise p1 and lower p2. C) Lower p2. D) Raise both p1 and p2. E) Raise p2 and lower p1.

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges p1 = $5 in one market and p2 = $10 in the other market. At these prices, the price elasticity in the first market is -1.40 and the price elasticity in the second market is -0.10. Which of the following actions is sure to raise the monopolist's profits?

A) Lower p2. B) Raise p2. C) Raise p1 and lower p2. D) Raise both p1 and p2. E) Raise p2 and lower p1. A) Lower p2. B) Raise p2. C) Raise p1 and lower p2. D) Raise both p1 and p2. E) Raise p2 and lower p1.