Which of the Following Is Not a Condition Required for a Monopolist

question 227

Multiple Choice

Which of the following is not a condition required for a monopolist to price discriminate?

• A)the demand curve facing the firm must be downward-sloping
• B)the firm must exhibit strong economies of scale
• C)there must be different groups of buyers with different price elasticities of demand
• D)the firm must be able to prevent reselling of the product
• E)the firm must have some market power

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Definitions:

Herfindahl Index

A measure of market concentration, calculating the sum of the squares of market shares of each firm within an industry.

Short-Run Equilibrium

A state in which market supply equals demand, determining the price and quantity sold, specifically within a short timeframe.

Profit-Maximizing

This refers to the process businesses use to determine the output level at which profits are at their highest.

Marginal Revenue Curve

A graph that displays how additional revenue is affected by the sale of one more unit of a product or service.