A Monopolist Can Engage in Price Discrimination

question 63

Multiple Choice

A monopolist can engage in price discrimination:

• A) if it faces a perfectly elastic demand curve.
• B) if it is able to buy a good at a low price and resell it at a higher price.
• C) if it is a price maker, can segment the market and prevent customers from reselling.
• D) if it faces a perfectly inelastic demand curve.

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Definitions:

Diarthroses

A category of joints in the human body that are freely movable, including ball-and-socket joints and hinge joints, allowing for a wide range of movements.

Synovial Membrane

The lining of joint cavities that secretes synovial fluid, providing lubrication to reduce friction between cartilage surfaces in movable joints.

Articular Cartilage

A smooth, white tissue that covers the ends of bones where they come together to form joints, reducing friction.

Synovial Membrane

The lining of a synovial joint that secretes synovial fluid, allowing for smooth movement of the joint.