When a Monopolist Is Able to Price-Discriminate

question 92

Multiple Choice

When a monopolist is able to price-discriminate:

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

Identify different forms of digital communication and their purposes.

Distinguish between various types of e-commerce.

Recognize the role and impact of social networking sites and professional networks in digital communication.

Understand the concepts of web security and privacy policies.

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Definitions:

Risk Averse

The tendency to prefer certainty over risk, where an individual opts for the investment with the least potential for financial loss.

NPV

A financial metric that calculates the total value of a project or investment by discounting future cash flows back to their present value and subtracting initial investment cost.

Scenario Analysis

A business planning technique in which the implications of variations in planning assumptions are explored. Also known as “what-if-ing.”

Abandonment Option

A financial decision allowing companies to cease a project or investment to avoid further losses.