If a Monopolist Can Perfectly Price Discriminate, Then

question 99

Multiple Choice

If a monopolist can perfectly price discriminate, then

• A) it will not give a discount to those who buy in bulk.
• B) the deadweight loss is larger than if it cannot price discriminate.
• C) there will be no consumer surplus.
• D) it will charge just two different prices in two different markets.

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Definitions:

Deductibles

Deductibles are the amount an insurance policyholder must pay out-of-pocket before the insurance coverage begins to pay for covered losses.

Out-Of-Pocket

Expenses that are paid directly in cash or cash equivalents during a transaction, without any form of credit.

Medicare

A federal program that provides health insurance to people over the age of 65 and to certain younger people with disabilities.

Medicaid

A public health insurance program in the United States that provides health care services to low-income individuals and families.