A Monopolist That Does Not Practice Price Discrimination Should Never

question 70

Multiple Choice

A monopolist that does not practice price discrimination should never produce in the

• A)Elastic portion of its demand curve because it can increase total revenue and reduce total costs by lowering the price.
• B)Inelastic portion of its demand curve because it can increase total revenue and reduce total costs by increasing the price.
• C)Inelastic portion of its demand curve because it can increase total revenue by more than it increases total cost by reducing the price.

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Definitions:

Rubisco

An enzyme involved in the first major step of carbon fixation, a process by which atmospheric carbon dioxide is converted by plants to energy-rich molecules.

Photorespiration

The process that reduces the efficiency of photosynthesis in C3 plants during hot spells in summer; consumes oxygen and produces carbon dioxide through the degradation of Calvin cycle intermediates.

Rubisco

An enzyme that catalyzes the first step of carbon fixation in the process of photosynthesis.

Calvin Cycle

A biochemical process in plants, algae, and cyanobacteria which converts carbon dioxide and water into organic compounds, especially sugars, using ATP and NADPH produced in photosynthesis.