To practice effective price discrimination, a monopolist must be able to:
A) estimate its own production and cost functions.
B) avoid detection by government regulatory agencies.
C) prevent the resale of goods among groups of buyers.
D) calculate the utility level of each buyer in the market.

Question

Quizplus · Accepted Answer

To practice effective price discrimination, a monopolist must prevent the resale of goods among groups of buyers to ensure that different prices can be charged to different consumers without them reselling to each other.

To Practice Effective Price Discrimination, a Monopolist Must Be Able