If a Monopolist's Marginal Cost Is Zero,in Order to Maximize

question 82

Multiple Choice

If a monopolist's marginal cost is zero,in order to maximize profit the monopolist will:

• A)set a price where demand is unit elastic.
• B)produce where demand is elastic.
• C)expand output to the limit of its physical capacity.
• D)not impose an efficiency loss on the society,since P=MC.

Recognize the role of market segmentation in price discrimination practices.

Comprehend the implications of price discrimination in service industries and why it is more prevalent there.

Understand regulatory approaches to monopolies and the concept of socially optimal pricing.

Evaluate the ethical considerations and consumer perceptions related to price discrimination practices.