A Monopoly Will Not Be Able to Perfectly Price Discriminate

question 98

Multiple Choice

A monopoly will not be able to perfectly price discriminate if

• A) each consumer does not reveal her reservation price.
• B) demand is very elastic.
• C) the firm's marginal cost curve is upward sloping.
• D) All of the above.

Calculate total payments and interest on loans and installment plans.

Understand the concept of FICO scores and their impact on creditworthiness.

Calculate the total cost of borrowing under different scenarios including payday loans and layaway plans.

Understand the relationship between billing cycles, purchases, and finance charges.

---

Definitions:

Machine Hours

A measure of the amount of time machines are operated in the production process, commonly used as an allocation base for assigning overhead costs.

Indirect Labor

Labor costs attributed to anything other than the direct manufacturing of goods or provision of services, such as maintenance, supervision, and administrative tasks.

Factory Utilities

Expenses incurred for electricity, gas, water, and sewage services used in the operation of a manufacturing plant or factory.

Plantwide Overhead Rate

A single rate used to allocate manufacturing overhead costs to all units produced, regardless of the department in which they were made.