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:

Black Smokers

Hydrothermal vents on the seafloor in which hot water from within the rock jets out into cold seawater and forms a cloud of minerals, especially those rich in sulfur.

Sulfide Minerals

Minerals composed of sulfide ions and one or more metals; important as ore minerals and for their chemical properties.

Fast-Spreading Ridge

A geological feature where tectonic plates are diverging at a rapid rate, leading to significant volcanic activity and the formation of new oceanic crust.

Hydrothermal Vents

Hydrothermal vents are openings in the sea floor from which heated mineral-rich water flows, often located near volcanically active places.