Suppose a Monopoly Can Separate Its Customers into Two Groups

question 221

Multiple Choice

Suppose a monopoly can separate its customers into two groups.If the monopoly practices price discrimination,it will charge the lower price to the group with:

• A)the higher price elasticity of demand.
• B)the lower price elasticity of demand.
• C)the fewer close substitutes.
• D)The answer cannot be determined with the information given.

---

Definitions:

Rigid

Characterized by inflexibility or strictness in structure, behavior, or thinking, often resistant to change.

Solve Problems

Involves identifying and resolving issues through analytical and creative thinking.

Nonverbal

Communication conveyed through body language, facial expressions, gestures, and other physical means rather than verbal speech.

Superior

Higher in rank, quality, or importance; often used to describe someone or something that excels compared to others.