A monopolist practices price discrimination by _____
A)charging different buyers different prices for different products.
B)charging different buyers different prices for the same product.
C)selling at a price below average total cost.
D)selling at a price below marginal cost.
E)selling at a price above marginal revenue.

Question

Quizplus · Accepted Answer

Price discrimination occurs when a firm charges different buyers different prices for the same product. This allows the firm to capture more revenue from buyers who are willing to pay a higher price, while still making a profit from buyers who are willing to pay a lower price. It requires the ability to separate consumers into different groups with different price elasticities of demand, and to prevent resale between groups.

A Monopolist Practices Price Discrimination by _____