If Consumers Are Identical,then

question 110

Multiple Choice

If consumers are identical,then

• A) price discrimination is impossible.
• B) price discrimination can occur if each consumer has a downward-sloping demand curve for the product.
• C) perfect price discrimination is the only form of price discrimination that can increase a monopoly's profit.
• D) tie-in sales cannot increase a monopoly's profit.

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Definitions:

Lump-sum Contract

A type of contract in which all work is agreed to be completed for a single, fixed price, regardless of the actual costs incurred.

Recognized Up Front

The practice of recording or acknowledging revenue or expenses immediately at the time of a transaction.

Franchisor

A business entity that grants the license to a third party for the conducting of a business under the franchisor's marks.

Franchise Revenue

Income generated from the operation of a franchised business model, typically including fees and royalties paid by franchisees.