To Practice Long-Run Price Discrimination, a Monopolist Must

question 22

Multiple Choice

To practice long-run price discrimination, a monopolist must

• A) be a natural monopoly.
• B) charge one price to all buyers.
• C) permit the resale of the product by the original buyers.
• D) be able to separate buyers into different markets with different price elasticities.

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Definitions:

Insurance Company

A financial institution that provides various forms of insurance policies to protect individuals or businesses against risks in exchange for premiums.

Modified Duration

A measure of the sensitivity of a bond’s price to changes in interest rates, indicating how much the price will change as interest rates move.

Semiannually

Occurring or payable twice a year.

Steel Pier

A historic oceanfront amusement park located in Atlantic City, New Jersey, known for its entertainment offerings.