Price Discrimination Is Based on Self-Selection

question 30

Multiple Choice

Price discrimination is based on self-selection:

• A) when a firm can distinguish consumers with a high versus low willingness to pay.
• B) when a firm offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay.
• C) when a monopolist knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit.
• D) when monopolists decide for themselves whether to engage in price discrimination.

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