Why Would a Monopolist Sort Customers by Age or Separate

question 151

Multiple Choice

Why would a monopolist sort customers by age or separate customers in time?

• A)to prevent those who pay the lower price from reselling the product to those paying the higher price
• B)to indicate that the firm is a price maker and has market power
• C)to make sure there are at least two groups of consumers for the product
• D)to ensure that the firm can charge each group a different price for essentially the same product
• E)to meet legal requirements

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Definitions:

Double Coincidence of Wants

A situation in barter economies where two parties each hold an item the other wants, making it possible for them to exchange these items directly.

100-percent-reserve Banking

A banking system in which banks are required to keep 100% of their deposits available as reserves, thus eliminating the possibility of bank runs.

Money Supply

The collective sum of money assets in an economy at a certain timeframe.

Standard of Living

The degree of prosperity, convenience, material possessions, and essential needs accessible to a specific social or economic group or particular location.