A Monopolist Practicing Second-Degree Price Discrimination and Facing a Constant

question 25

Multiple Choice

A monopolist practicing second-degree price discrimination and facing a constant marginal cost:

• A)should charge a higher price to the market segment that has the more elastic demand.
• B)sets the price schedule according to the number of units purchased by the consumers.
• C)need not worry about preventing resale of the product.
• D)will supply more output than a perfectly price discriminating monopolist.

---

Definitions:

Influencers

Individuals who have the power to affect the purchasing decisions of others due to their authority, knowledge, position, or relationship.

Brand Development

The process of creating and strengthening a brand's equity directly through advertising campaigns and indirect methods such as customer experience management.

Packaging

The process of designing and producing the container or wrapper for a product, which serves to protect, transport, and communicate brand values to consumers.

Local Cultures

The customs, beliefs, arts, and institutions of a community that are specific to a geographical area or social group.