A Monopolist Sets Its Price at $100 and Offers a 10

question 44

Multiple Choice

A monopolist sets its price at $100 and offers a 10% rebate.For this to be a perfect hurdle,it must be the case that

• A) everyone takes advantage of the rebate.
• B) those with a reservation price of $90 do not make a purchase.
• C) no one takes advantage of the rebate.
• D) those with a reservation price of $100 make the purchase and claim the rebate.
• E) those with a reservation price of $100 or more make the purchase and ignore the rebate while those with a reservation price between $99 and $90 make the purchase and use the rebate.