When Might Price Discrimination Be a Rational Strategy for a Profit-Maximizing

question 59

Multiple Choice

When might price discrimination be a rational strategy for a profit-maximizing monopolist?

• A) when there is a substantial opportunity for reselling across market segmentations
• B) when there is no opportunity for reselling across market segmentations
• C) when consumers are unable to be segmented into identifiable markets
• D) when the elasticity of demand is the same across all customers

---

Definitions:

Mood Congruency

The phenomenon where an individual's current mood influences their thoughts, behaviors, and perceptions in a way that is consistent with the mood.

Example

An instance or situation that is representative of a group or set of things, often used to illustrate a point or explain a concept.

Experiential Purchases

Buying activities or experiences rather than physical goods, aiming for emotional satisfaction or memories.

Material Goods

Physical items produced for sale or use, often considered in the context of personal possessions or wealth.