Question: Which of the following statements about a third degree price discrimination monopolist selling in two different markets (meaning to two groups of consumers) is FALSE?

  • Which of the following statements about a third degree price discrimination monopolist selling in two different markets (meaning to two groups of consumers) is FALSE?

  • A third degree price discriminating monopolist prices makes higher profit than if it charged a uniform price in both market.

    A profit maximizing third degree price discriminating monopolist sets marginal rev- enue equal across markets.

    None of the above

    A profit maximizing third degree price discriminating monopolist sets marginal rev- enue equal to marginal cost in both markets.


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