A ________ can price discriminate if, in part, it ________.
A) monopoly; can prevent resale of its product
B) perfectly competitive firm; can sell goods at a lower price than a monopoly
C) perfectly competitive firm; changes from a price taker to a price maker
D) monopoly; is the only seller of a good or service
E) natural monopoly; is the only seller of a good or service

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different customers based on their willingness to pay. A monopoly can price discriminate because it is the only seller of a particular product, and it can prevent the resale of its product to different customer groups. This allows the monopoly to charge different prices to different groups of customers, maximizing its profits.

A ________ Can Price Discriminate If, in Part, It ________

A Can Price Discriminate If, in Part, It