The Reason a Monopolist Has an Incentive to Price Discriminate

question 161

Multiple Choice

The reason a monopolist has an incentive to price discriminate is that

• A) some consumers,who are unwilling to pay the uniform monopoly price,are willing to pay more than the marginal cost.
• B) he can always use his market power to charge different prices.
• C) his marginal cost will be lower when he price discriminates.
• D) it causes demand to become more inelastic.
• E) some consumers,who are willing to pay the uniform monopoly price,are unwilling to pay more than the marginal cost.

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