A monopoly will not be able to perfectly price discriminate if
A) each consumer does not reveal her reservation price.
B) demand is very elastic.
C) the firm's marginal cost curve is upward sloping.
D) All of the above.

Question

Quizplus · Accepted Answer

Perfect price discrimination requires the monopoly to know the reservation price of each consumer, which may not be possible if consumers do not reveal this information. Option B is not correct since a monopoly may still be able to engage in perfect price discrimination even with elastic demand. Option C is also incorrect since the slope of the marginal cost curve does not necessarily affect the ability to price discriminate.

A Monopoly Will Not Be Able to Perfectly Price Discriminate