If a Pure Monopolist Can Price Discriminate by Separating Buyers

question 155

Multiple Choice

If a pure monopolist can price discriminate by separating buyers into two or more groups,

• A) the marginal revenue curve and the total revenue curve will now coincide.
• B) the marginal revenue curve will now shift to a position above the demand curve.
• C) the firm will face multiple marginal revenue curves.
• D) marginal revenue will become less at each level of output than it would be without price discrimination.

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Definitions:

Iberian Peninsula

A European peninsula located in the southwest corner of Europe, occupied by Spain and Portugal.

Portuguese

Refers to something of, from, or related to Portugal, including its culture, people, or language.

Western Atlantic Trade

A historical trading network across the Atlantic Ocean, primarily involving European countries and their American and African colonies, facilitating the exchange of goods, slaves, and resources from the 16th to the 19th centuries.

Spanish Conquistadors

Explorers and soldiers from Spain who, during the 16th century, conquered large portions of the Americas, including the Aztec and Inca empires.