Assume That a Monopolist Is Charging Each of Two Different

question 47

Multiple Choice

Assume that a monopolist is charging each of two different groups of consumers two different prices for its output.For this to be considered price discrimination,

• A) production costs must be the same.
• B) the two groups must be easily identified.
• C) resale of the output by one group to the other must be impossible.
• D) the groups must be men or women.
• E) marginal revenue must be the same.

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Definitions:

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by the party to be charged in order to be enforceable.

Notation or Memorandum

Notation or Memorandum refers to a brief written record or note made for the purpose of aiding memory or providing formal documentation of an event, decision, or agreement.

Bilateral Contract

A legal agreement where each party promises to perform an act in exchange for the other party's act.