Which Is True of a Price-Discriminating Pure Monopolist

question 269

Multiple Choice

Which is true of a price-discriminating pure monopolist?

• A)P > MR for the last unit sold.
• B)Profit will be higher than in the nondiscriminating case.
• C)The average price will be higher than in the nondiscriminating case.
• D)Allocative inefficiency will be greater than in the nondiscriminating case.

---

Definitions:

Master Budget

A comprehensive financial planning document that consolidates all of an organization's budgets for various departments or activities.

Budgeted Selling Price

The projected price at which a product is expected to be sold, factored into business planning and budgeting processes.

Raw Materials

Basic materials and components used at the beginning of the production process to manufacture goods.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services, often used as a basis for assigning manufacturing overhead costs to products.