Exhibit 23-6 Refer to Exhibit 23-6. Let C Be the Demand Curve

question 140

Multiple Choice

Exhibit 23-6
Refer to Exhibit 23-6. Let C be the demand curve facing a perfectly price-discriminating monopolist and P₀ the price it charges for the last unit of X it sells. The marginal cost of the last unit

• A)is less than P₀.
• B)equals P₀.
• C)is greater than P₀.
• D)There is not enough information provided to answer this question.

---

Definitions:

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties for noncompliance.

Networking

The act of building and maintaining professional or social relationships, often to share information, find opportunities, or support one another.

Referent Power

A form of influence based on identification with, attraction to, or respect for the leader.

Expert Power

Expert power is a form of influence based upon the perception of special knowledge, skills, or expertise that an individual possesses.