Which of the Following Must a Firm Be Able to Do

question 358

Multiple Choice

Which of the following must a firm be able to do to successfully price discriminate?
i.divide buyers into different groups according to their willingness to pay
ii.prevent resale of the good or service
iii.identify into which group (high willingness to pay or low willingness to pay) a buyer falls

• A) ii only
• B) i and ii
• C) i and iii
• D) iii only
• E) i, ii, and iii

Understand the characteristics and behaviors of monopolistic markets, including price setting and output decisions.

Explain the economic effects of monopolies on consumer surplus, producer surplus, and total surplus.

Analyze the impact of monopolies on social welfare, including the concepts of deadweight loss and welfare gains.

Understand the concept and implications of price discrimination for monopolies and oligopolies.