Suppose that a price-discriminating monopolist divides its market into two segments. If the firm sells its product for a price of $42 in the market segment where demand is relatively less elastic, the price in the market segment whose customers’ demand is more elastic will be

a. $42
b. greater than $42
c. less than $42
d. less than marginal revenue in that market segment
e. equal to marginal revenue in that market segment

ANSWER

c. less than $42