Which of the Following Statements Is TRUE

question 216

Multiple Choice

Which of the following statements is TRUE?

• A) Arbitrage makes it easier for firms to set different prices in different markets.
• B) To maximize profits, monopolists will always set a higher price in markets with more inelastic demand curves.
• C) Monopolists typically prefer not to segment markets.
• D) Even if demand curves are identical, it is still typically profit maximizing for monopolists to charge different prices in different markets.

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Definitions:

Prefrontal Cortex

A region of the frontal lobe of the brain implicated in various complex behaviors, including decision making, planning, and moderating social behavior.

Hippocampus

A major component of the brain involved in memory formation, organization, and retrieval, as well as spatial navigation.

Discrimination Learning

The process by which an individual learns to respond differently to similar but distinct stimuli, often in the context of rewards or punishments.

Discriminative Stimulus

A stimulus that signals the availability of reinforcement or punishment, guiding the organism to respond in certain ways.