What Condition Must Exist for a Monopolist to Effectively Price

question 416

Multiple Choice

What condition must exist for a monopolist to effectively price discriminate?

• A) The monopolist must face consumers with identical willingness to pay.
• B) The monopolist must produce a good or service that can be resold.
• C) The monopolist must produce a good that cannot be resold.
• D) The monopolist must charge the highest price possible.

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Definitions:

Preempted

A situation where a higher authority or law supersedes or takes precedence over a lower one, often preventing certain actions or regulations.

Design Defect

A flaw in the intended design of a product that results in it being unsafe for use or consumption.

Alternative Design

A potential solution or plan that differs from the original or current design, often considered to meet certain goals or solve problems more effectively.

Product Liability Laws

Regulations that hold manufacturers, distributors, suppliers, and retailers responsible for injuries caused by defective products.