A monopoly who sells in two markets in which demand is not identical will be unable to maximize his profits unless he:

CA Foundation · Business Economics · MTP · September 2026
A monopoly who sells in two markets in which demand is not identical will be unable to maximize his profits unless he:
(A) A. sells below cost of production in both markets.
(B) B. practices price discrimination
(C) C. equate the volume of sales in both markets.
(D) D. equate marginal cost and marginal revenue in one market only.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. practices price discrimination

Topics: Price Determination in Different Markets

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