How Is It Logically Possible for a Monopolist to Get

question 19

Multiple Choice

How is it logically possible for a monopolist to get different consumers to purchase different bundles on a menu (such as different sizes of coffee cups) ,and thereby achieve a form of price discrimination,even if the firm cannot observe the consumers' valuations directly?

• A) different types of consumers have different tradeoffs between money and amounts of the good.
• B) the monopolist can use a market-separation strategy.
• C) social norms are powerful deterrents to lying about one's type.
• D) this is impossible: if one bundle is preferred by one type, logically it will be preferred by all.

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