How will equilibirium be determined under discriminating monopoly with two markets?

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1212585

2026-07-31 00:15

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It will be so because it will not achieve a social equilbrium of marginal benefit (demand) = marginal cost (supply). It will instead set a private profit equilibrium where private benefit (marginal revenue) = marginal cost and thus create a deadweight inefficiency equal to the difference in total social surplus between the regions.

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