A Monopolist or an Imperfectly Competitive Firm Practices Price Discrimination

question 73

Multiple Choice

A monopolist or an imperfectly competitive firm practices price discrimination primarily to:

• A)increase profits.
• B)expand plant size.
• C)lower total costs.
• D)reduce marginal costs.

---

Definitions:

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Future Volatility

The degree of variation of trading prices over time, typically measured by the standard deviation of returns, predicting the range of potential movements of an asset's price.