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:

Scarcity Principle

A psychological principle suggesting that people find items and opportunities more valuable when they are perceived as scarce or limited.

Disrupt-then-reframe Technique

A sales technique that initially creates confusion or disruption in the consumer's mind, then offers a simple, positive reframe to encourage purchase.

Breaking up Attention

The act of dividing one's focus between multiple tasks or stimuli, which can reduce the effectiveness of cognitive processing.

Persuasion

An attempt to change a person’s attitude.