If a Monopolist Engages in Price Discrimination, It Will

question 96

Multiple Choice

If a monopolist engages in price discrimination, it will

• A)realize a smaller profit.
• B)charge a higher price where individual demand is inelastic and a lower price where individual demand is elastic.
• C)produce a smaller output than when it did not discriminate.
• D)charge a competitive price to all its customers.

---

Definitions:

Financial Resources

Financial resources are the funds that are available to a business for spending in the form of cash, liquid securities, and credit lines.

Staircase Analysis

A method of analyzing the incremental steps a company must take to reach a higher level of performance or goal.

Strategic Business Units

Autonomous divisions within large companies that focus on specific market segments or product lines and have their own strategy and objectives.

Marketers

Professionals responsible for creating and executing strategies to promote and sell products or services to target consumers.