A Monopoly Can Practise Price Discrimination When It

question 90

Multiple Choice

A monopoly can practise price discrimination when it

• A)can segment the market according to the different prices the consumers are willing to pay.
• B)is a price taker.
• C)has different marginal costs of production for different output levels.
• D)has decreasing average variables cost.
• E)produces a good with close substitutes.

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Definitions:

Variance

A measure of the dispersion indicating how far each number in the set is from the mean and from each other.

Standard Deviation

Standard deviation is a measure of the dispersion or spread of a set of data points relative to its mean, indicating how spread out the data points are.

Salaries

Payments made regularly by an employer to an employee, especially a professional or white-collar worker.

5-Number Summary

A statistical summary that provides five key data points: minimum, first quartile, median, third quartile, and maximum.