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.

---

Definitions:

Equal Numbers

A condition or state where two or more quantities or entities are of the same value or amount.

Interrupted Time Series Design

A quasi-experimental design where observations are made over time both before and after an intervention to detect whether the intervention has an effect distinct from underlying trends.

Observation

involves systematically capturing or recording behavior, phenomena, or events as they naturally occur, without manipulation by the observer.

Treatment

In research, an intervention or condition that is applied to a group of subjects to observe its effects, often compared to a control group without the intervention.