It Is Easier for a Monopolist to Price Discriminate Between

question 298

Multiple Choice

It is easier for a monopolist to price discriminate between groups for a service than for a good because

• A) it is easier to calculate average willingness to pay for services.
• B) it is easier to distinguish between groups of customers for services than customers for goods.
• C) it is easier for consumers to resell goods than resell services.
• D) customers for goods usually do not differ with respect to their average willingness to pay.

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Definitions:

Hasty Generalization

A logical fallacy in which a broad conclusion is drawn from a small set of evidence or examples.

Generalizations

A process in reasoning where broader conclusions are drawn from specific cases or examples.

Stereotyping

The act of ascribing generalized and often inaccurate or oversimplified characteristics to members of a group.

Prejudice

Preconceived opinion that is not based on reason or actual experience, often directed towards people or groups based on their identity.