If an Ordinary Price Discrimination Monopolist Charges a Higher Price

question 54

Multiple Choice

If an ordinary price discrimination monopolist charges a higher price in one market than another, it must mean that at the profit- maximising level of output in each market the:

• A)monopolist is implementing perfect price discrimination.
• B)price- elasticity of demand is higher in the high- price market.
• C)price- elasticity of demand is lower in the high- price market.
• D)reservation prices are generally higher in the high- price market.

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Definitions:

Long-term Trend

This is a sustained movement in data over a long period, indicating a general direction in which something is developing or changing.

Time Series

Sequenced data points collected or recorded at time intervals, often analyzed to identify trends, cyclical patterns, or to forecast.

Random Variation

Fluctuations in data or experimental results due to unpredictable changes in variables or conditions.

Time Series

A sequence of data points collected or recorded at successive points in time, often analyzed to identify trends, cycles, and seasonal variations.