Monopolists Are Able to Price Discriminate Because

question 565

Multiple Choice

Monopolists are able to price discriminate because

• A) of differing willingness to pay among consumers.
• B) of differing price elasticities of supply.
• C) they have constant marginal cost.
• D) they have constant average cost.

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Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by relating the cost of goods sold to retail sales.

Net Sales

The amount of revenue a company generates from its sales activities after deducting any returns, allowances, and discounts.

Beginning Inventory

The value of a business's inventory at the start of an accounting period.

Lower-of-Cost-or-Market

An accounting principle that values inventory at the lower of its historical cost or market value.