If the Monopolist Can Discriminate Between Buyers, Then It Is

question 46

Multiple Choice

If the monopolist can discriminate between buyers, then it is optimal to charge:

• A) a higher price to the buyers with high elasticity of demand, and a lower price to the buyers with low elasticity of demand.
• B) a lower price to all buyers.
• C) a higher price to all buyers.
• D) a lower price to the buyers with high elasticity of demand, and a higher price to the buyers with low elasticity of demand.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.

Increase the Duties

The process of enhancing the responsibilities, workload, or performance expectations of a role or position.

Right to Payment

The entitlement to receive a certain amount of money, typically as a result of a contract or agreement.

Assignee

The person or entity to whom rights, interests, or properties are legally transferred.