Which of the Following Is NOT Necessary in Order for a Monopolist

question 247

Multiple Choice

Which of the following is NOT necessary in order for a monopolist to practice effective price discrimination?

• A) The marginal cost of providing the same good to different groups of buyers must be different.
• B) The monopolist must be able to segregate its market into different submarkets.
• C) The buyers in various markets must face different price elasticities of demand.
• D) The monopolist must have a downward sloping demand curve.

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Definitions:

Point-Of-Purchase Display

Marketing materials or advertising placed next to the merchandise they promote, typically in the checkout area.

Freestanding Rack

An independent display unit used in retail to showcase products.

Sales Promotions

Marketing activities aimed at increasing sales and customer interest in products or services.

Greatly Reduced Price

A significant decrease in the price of a product or service, often used as a sales promotion technique.