Which of the Following Is Necessary for a Monopolist to Price

question 5

Multiple Choice

Which of the following is necessary for a monopolist to price discriminate between groups?

• A) The groups have different willingness to pay.
• B) The groups are identifiable.
• C) A customer from one group cannot resell to a customer in another group.
• D) All of the above conditions are necessary for the monopolist to price discriminate.

---

Definitions:

Overapplied Overhead

A condition where the overhead allocated to goods produced exceeds the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including material and labor expenses.

Finished Goods Inventory

Merchandise completed in production and set to be offered to shoppers.

Predetermined Overhead Rate

A predetermined overhead rate is used to allocate indirect costs to products or services based on a predetermined formula.