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If two markets have the same price elasticity of demand at every price, a monopoly will not practice mulitimarket price discrimination

True.
False.

User Cassaundra
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Final answer:

False, A monopoly can still engage in multimarket price discrimination even if the price elasticity of demand is the same in different markets, provided that markets can be segmented and arbitrage is prevented or limited.

Step-by-step explanation:

The statement is False. If two markets have the same price elasticity of demand at every price, this does not necessarily mean that a monopoly will not practice multimarket price discrimination. Price discrimination is based on the ability to segment markets and charge different prices to different groups based on their willingness to pay, not solely on the uniformity of price elasticity across those markets.

A monopoly with market power can practice price discrimination even if the price elasticity of demand is the same in different markets, especially if the markets can be separated in some way and arbitrage (resale of goods between markets) is prevented or limited.

User Ajay Pandey
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