A Monopolist That Practices Perfect Price Discrimination

question 146

Multiple Choice

A monopolist that practices perfect price discrimination

• A)creates no deadweight loss.
• B)charges one group of buyers a higher price than another group, such as offering a student discount.
• C)produces the same monopoly level of output as when a single price is charged.
• D)charges some customers a price below marginal cost because costs are covered by the high-priced buyers.

Acknowledge the limitations and appropriate use of specialized language (jargon) in business contexts.

Understand the components and purposes of various business documents.

Analyze the audience to choose the appropriate message strategy (direct or indirect).

Identify formal and informal research methods in business communication.

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Definitions:

Monetary Amount

The numerical value or sum of money expressed in a currency.

Nearest Cent

Rounding an amount to the closest cent, where amounts under half a cent are rounded down and half a cent or over are rounded up.

Salesperson Drives

Activities or motivations that propel a salesperson to achieve sales targets or perform sales activities.

Pounds Pork

A measurement of pork weight in pounds, commonly used in the sale and distribution of this type of meat.