A Necessary Condition for a Monopolist to Successfully Practice Ordinary

question 9

Multiple Choice

A necessary condition for a monopolist to successfully practice ordinary price discrimination is the:

• A)identification of buyers' reservation prices in all isolated markets.
• B)ability to segment its total market.
• C)identification of different price elasticities for each buyer.
• D)existence of profitable arbitrage between markets.

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Definitions:

Excise Tax

A tax applied to specific goods or services, often included in the price of products such as tobacco, alcohol, and fuel.

Average Tax Rate

The percentage of the total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Personal Income

The total amount of income received by an individual or household from all sources before taxes and deductions.

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed.