Q502
Assertion (A): If the monopolist faces identical demand curves for his commodity in two separate markets, by practising third degree price discrimination, he cannot increase his TR and total profits. Reason (R): As the marginal revenue curves are identical when the demand curves in the two markets are the same, the monopolist will not charge different prices in each market to maximise profits.
A.
Both A and R are true and R is the correct explanation of A
AnswerB.
Both A and R are true, but R is NOT a correct explanation of A
C.
A is true, but R is false
D.
A is false, but R is true
Answer: Option A
Solution
Answer: Option A
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