10.3 Price Discrimination Suppose a Monopolist Faces the Demand Curve and Cost Curves

question 126

Multiple Choice

10.3 Price Discrimination
Suppose a monopolist faces the demand curve and cost curves shown below. FIGURE 10-5
-Refer to Figure 10-5.Suppose this monopolist is practicing perfect price discrimination.How does this differ from the situation where this firm is charging a single price for its product?

• A)The firm is producing the same quantity,has successfully identified different segments of the market,and is able to capture some of the consumer surplus.
• B)The firm is restricting output to a level below that of the single-price monopolist,and thereby raises the price of its product and earns higher profits.
• C)The firm is producing a smaller quantity,is charging a different price for each unit sold and is earning higher profits.
• D)The firm is producing the same quantity,but charging a different price for each unit sold and is earning higher profits.
• E)The firm is producing a higher quantity,is charging a different price for each unit sold and is earning higher profits.

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Collaborative Filtering

A technique used by recommendation systems to predict a user's interests by collecting preferences from many users.

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Collaborative Filtering

A technique used by recommendation engines to filter out items by predicting a user's interest based on collected preferences from many users (collaborating).