If a Pure Monopolist Can Price Discriminate by Separating Buyers

question 155

Multiple Choice

If a pure monopolist can price discriminate by separating buyers into two or more groups,

• A) the marginal revenue curve and the total revenue curve will now coincide.
• B) the marginal revenue curve will now shift to a position above the demand curve.
• C) the firm will face multiple marginal revenue curves.
• D) marginal revenue will become less at each level of output than it would be without price discrimination.

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Definitions:

Informal Acknowledgement

Recognition or validation of an individual's contributions or achievements in a non-formal or unofficial manner, often contributing to personal satisfaction and motivation.

Extinguish

In behavioral psychology, to diminish or eliminate a learned response, typically by discontinuing reinforcement of the response.

Reinforcement

A principle in behavioral psychology that increases the likelihood of a desired response by rewarding or punishing a behavior.

Negative Stimulus

An undesirable or harmful factor that elicits a reaction from an organism or system.