A Monopolist Can Perfectly Price Discriminate

question 8

Multiple Choice

A monopolist can perfectly price discriminate

• A) When it can distinguish consumers with a high versus low willingness to pay
• B) When it offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay
• C) If it knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit
• D) When it cannot distinguish consumers with a high versus low willingness to pay

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Definitions:

Law Of Effect

A principle in psychology that suggests behaviors followed by favorable consequences become more likely, whereas behaviors followed by unfavorable consequences become less likely.

Thorndike

American psychologist famous for his work on learning theory that led to the development of operant conditioning within behaviorism.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a reflexive response without any prior learning.

Conditioned Stimulus

An initially neutral signal that, once it's linked with an unconditioned stimulus, ultimately provokes a conditioned response.