A monopolist sets its price at $100 and offers a 10% rebate.For this to be a perfect hurdle,it must be the case that:
A) those with a reservation price of $100 or more purchase and ignore the rebate while those with a reservation price between $99 and $90 purchase and use the rebate.
B) those with a reservation price of $90 don't make a purchase.
C) no one takes advantage of the rebate.
D) those with a reservation price of $100 make the purchase and claim the rebate.
Correct Answer:
Verified
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