Which of the following helps a monopoly perfectly price discriminate?

Question

Quizplus · Accepted Answer

Perfect price discrimination occurs when a monopoly is able to charge each consumer the exact maximum price they are willing to pay for a product. This can be achieved by:

A) Product demand by each consumer: If a monopoly is able to identify the maximum price each consumer is willing to pay for their product, they can charge them accordingly. This requires an understanding of the individual demand curves of each consumer.

B) The product is perishable: If the product has a short shelf life or expiration date, the monopoly can charge a higher price to those consumers who are willing to pay more to get the product before it expires.

C) The product is personalizable: If the product can be customized or tailored to individual preferences, the monopoly can charge a higher price to those consumers who want a more customized version of the product.

Therefore, all of the above factors can help a monopoly achieve perfect price discrimination.

Which of the Following Helps a Monopoly Perfectly Price Discriminate