How Can a Monopolist Get Different Consumers to Purchase Different

question 23

Multiple Choice

How can a monopolist 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 separate the types into different markets.
• 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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