What Condition Must Exist for a Monopolist to Effectively Price

question 416

Multiple Choice

What condition must exist for a monopolist to effectively price discriminate?

• A) The monopolist must face consumers with identical willingness to pay.
• B) The monopolist must produce a good or service that can be resold.
• C) The monopolist must produce a good that cannot be resold.
• D) The monopolist must charge the highest price possible.

---

Definitions:

Operating Expenses

Costs associated with running a business's day-to-day operations, excluding costs related to producing goods or services.

Inventory System

A system for tracking a company's goods and materials, managing the process of ordering, storing, and using the company's inventory.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board for global use.

Perpetual

A method of inventory management where updates are made continuously as transactions occur.