3.8 Does a monopolys ability to price discriminate between two groups of consumers depend on its marginal

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3.8 Does a monopoly’s ability to price discriminate between two groups of consumers depend on its marginal cost curve? Why or why not? [Consider two cases:

(a) the marginal cost is so high that the monopoly is uninterested in selling to one group;

and

(b) the marginal cost is low enough that the monopoly wants to sell to both groups.]

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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