If a Pure Monopolist Can Price Discriminate by Separating Buyers

question 268

Multiple Choice

If a pure monopolist can price discriminate by separating buyers into two or more groups,

• A)the marginal revenue curve and the total revenue curve will now coincide.
• B)the marginal revenue curve will now shift to a position above the demand curve.
• C)the firm will face multiple marginal revenue curves.
• D)marginal revenue will become less at each level of output than it would be without price discrimination.

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Definitions:

Typicality Effect

The phenomenon whereby experimental participants are faster to respond to typical instances of a concept (e.g., robin for the concept “bird”) than to atypical instances (e.g., penguin for the concept “bird”).

Cognitive Economy

A principle of hierarchical semantic networks such that properties and facts about a node are stored at the highest level possible. For example, the fact “is alive” would be stored with the node for “animal” rather than stored with each node under animal such as “dog” and “cat.”

Encoding Specificity

A principle of retrieval asserted by Tulving. At the time material is first put into long-term memory, it is encoded in a particular way, depending on the context present at the time. At the time of recall, the person is at a great advantage if the same contextually supplied information available at encoding is once again available.

Connectionism

An approach to cognition emphasizing parallel processing of information through immense networks of interconnected nodes. Models developed in the connectionist tradition are sometimes declared to share certain similarities with the way collections of neurons operate in the brain; hence, some connectionist models are referred to as neural networks.