Price Discrimination Is Possible,in Part,because

question 133

Multiple Choice

Price discrimination is possible,in part,because

• A) costs of production vary as output increases.
• B) monopolies are regulated.
• C) monopolies don't profit maximize.
• D) the willingness to pay can vary among groups of buyers.
• E) monopolies face horizontal demand curves.

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Definitions:

Inelastic Demand

A market situation in which the demand for a product does not significantly change with its price increase or decrease.

Total Revenues

The entire amount of income generated by a company from its business activities, before any expenses are subtracted.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.

Variable Costs

Costs that change in proportion to the level of output or activity.