If a Monopolist Is Practising Perfect Price Discrimination,we Know That

question 109

Multiple Choice

If a monopolist is practising perfect price discrimination,we know that

• A)the firm is producing a lower output than it would if it were a single- price monopolist.
• B)the firm is selling each unit at a different price and capturing all consumer surplus.
• C)marginal cost is rising as output rises.
• D)the firm is facing a perfectly elastic demand curve.
• E)the firm is facing a perfectly inelastic demand curve.

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Definitions:

Reinforcer

Any stimulus that increases the likelihood of a preceding behavior being repeated.

Primary Reinforcer

An innate reinforcing stimulus like nourishment or shelter, which does not require learning to be effective in enhancing behavior.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

Negative Contrast Effects

A psychological phenomenon where an individual's perception of an option is negatively influenced by a comparison with a better option.