The Main Reason a Monopoly Engages in Price Discrimination Is

question 109

Multiple Choice

The main reason a monopoly engages in price discrimination is that:

• A) it wants to discriminate against a particular ethnic group.
• B) doing so increases its profits.
• C) it wants to discourage potential competitors.
• D) by charging a lower price to some people, it may succeed in discouraging efforts to regulate it.

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Definitions:

Simple Interest

Interest computed solely on the initial amount invested, excluding any previously earned interest.

Investment

The undertaking of investing resources, usually capital, with the foresight of amassing income or profits.

Months

Units of time, typically used to measure periods within a year, consisting of 28 to 31 days.

Invested

Assigning monetary assets with the prospect of gaining returns or profit.