If the Monopolist Can Discriminate Between Buyers, Then It Is

question 46

Multiple Choice

If the monopolist can discriminate between buyers, then it is optimal to charge:

• A) a higher price to the buyers with high elasticity of demand, and a lower price to the buyers with low elasticity of demand.
• B) a lower price to all buyers.
• C) a higher price to all buyers.
• D) a lower price to the buyers with high elasticity of demand, and a higher price to the buyers with low elasticity of demand.

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Definitions:

Incapacitating

Rendering someone or something unable to function in a normal capacity.

Distressing

causing extreme anxiety, sorrow, or pain; emotionally unpleasant.

Generalized Anxiety Disorder

A chronic disorder marked by excessive, ongoing anxiety and worry that are difficult to control and interfere with daily activities.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear or discomfort along with physical symptoms like heart palpitations and dizziness.