When a Monopolist Is Able to Price-Discriminate

question 144

Multiple Choice

When a monopolist is able to price-discriminate:

• A) its profits tend to increase and its output tends to fall.
• B) both its profits and output tend to increase.
• C) both its profits and output tend to decrease.
• D) its profits tend to fall and its output tends to increase.

---

Definitions:

Random Variable

A variable whose values depend on outcomes of a random phenomenon, with each outcome having a certain probability.

Confidence Interval

A breadth of values, derived from sample observations, with a high chance of containing an unknown population parameter's value.

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha.

Null Hypothesis

A statistical hypothesis that suggests there is no significant effect or difference between certain data sets or variables.