Suppose group price discrimination is possible; however, a firm sets t

Suppose group price discrimination is possible; however, a firm sets the same price in each market. As a result,

A) price elasticity of demand is the same in each market.
B) the price-inelastic market will buy zero units.
C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market.
D) the deadweight loss is less than if the firm price discriminated.

ANSWER

C